Noble shares up as it confirms sale of 49% stake in agri unit to Cofco

Singapore

SHARES in Noble Group rose 4.5 per cent on Tuesday to 46 Singapore cents after the commodity trader confirmed that it was selling its remaining 49 per cent stake in its agriculture unit to China's state-owned grain trader Cofco, potentially freeing it from the threat of a potential credit rating downgrade.

While rating agencies Standard & Poor's and Fitch noted that this would reduce pressure on Noble's tight liquidity position, the former, however said the sale of Noble Agri could weaken the group's business position, including its business diversity and long-term competitiveness.