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Noble Group ups stake in ASX-listed East Energy Resources in satisfaction of debt

COMMODITY trader Noble Group on Monday said its indirect wholly owned subsidiary, Maylion has acquired an additional 52.5 per cent shareholding interest in coal exploration and development firm, East Energy Resources (EER).

EER is incorporated in Australia and listed on the Australia Securities Exchange (ASX). Following the transaction, Maylion's stake in EER will increase to 93.4 per cent from 40.9 per cent. Thus, EER will cease to be an associated company of Noble, and become its subsidiary instead. 

The additonal shares were issued in satisfaction of a A$28 million (S$28.3 million) debt owed to Noble by EER, which has been fully impaired since the third quarter last year, Noble said. On this basis, the consideration paid by Noble for this transaction was effectively nil. 

Based on the latest unaudited financial statements of Noble for the three months ended March 31, 2018, the book value and net tangible asset value attributed to the additional shares were also negligible, Noble said. 

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EER's market cap stands at about A$1.78 million, based on the number of issued shares in the capital of the firm prior to this deal, and the volume-weighted average price of 0.5 Australian cent, as transacted on the ASX on June 21, 2018. 

As at 9.56am on Monday, shares in Noble were trading at S$0.177, up 25.5 per cent or 3.6 Singapore cents. Some 28.8 million shares exchanged hands, making it one of the most heavily traded counters on the Singapore bourse in the early morning trade.