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Noble in talks with Cofco to sell remaining agri stake
NOBLE Group is in advanced talks to sell its remaining stake in its agriculture unit as well as in other strategic transactions, as it seeks to boost its liquidity position.
The statement by the commodity trading group on Tuesday night followed media reports that it is planning to sell its 49 per cent stake in Noble Agri to Chinese grain trader Cofco for US$700-750 million. Cofco last year paid about US$1.5 billion for 51 per cent of the business.
Noble has to raise at least US$500 million by February to avoid being downgraded by credit rating agencies Standard & Poor's and Moody's.
"The company confirms that it is in advanced discussions with potential purchasers on both this sale and other strategic transactions, but no definitive or legally binding documents have yet been signed and there can be no assurance that the sale or any other transaction will proceed," Noble said. "The company will update the market if and when it is appropriate to do so."