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Noble divests Indonesian subsidiary for nominal payment of US$1
TROUBLED commodities trader Noble Group sold its beneficial interests in an Indonesian subsidiary for a nominal US$1 in cash on Wednesday, with the buyer also taking on all the outstanding payables owed.
Kaltim Bio Energi had a book value of US$10.4 million, based on unaudited financial results for the six months to June 30. Its outstanding payables include a US$10.4 million pre-payment facility owed to Noble.
The buyer, Wadash Enterprises, also takes on the environmental liabilities and mine closure and rehabilitation liabilities associated with Kaltim Bio Energi.
Noble said that the divestment does not affect its ongoing proposed debt restructuring.
The value of the deal was reached by arm's-length negotiations, on a willing buyer, willing seller basis that took into account "the relevant market and commercial considerations", it added.
Noble closed down by 0.6 Singapore cent, or 4.65 per cent, to S$0.123, before the latest announcement.