SINGAPORE (June 23): Shares in Noble Group were up 16.5% to 53 Singaporean cents this morning, with 28.6 million shares traded.
The surge came after Noble announced late on Thursday that Abu Dhabi-based Goldilocks Investment Company had bought 50.5 million shares in the group.
The acquisition boosted Goldilocks stake in Noble from 1.18% to 5.03%, making it a substantial shareholder.
Noble also announced the disposal of its entire 45% stake in an Indonesia-based coal logistics services provider.
The latest moves come on the heels of the extension of Noble’s US$2 billion (S$2.8 billion) credit facility for 120 days.
Controlled by Jassim Alseddiqi, CEO and MD of Abu Dhabi Financial Group, Goldilocks Investment is said to look for deeply undervalued M&A opportunities.
Analysts say Noble has US$1.7 billion in readily-marketable inventory, which could easily be liquidated.
Noble’s new management has also reiterated its commitment to cutting debt, slashing capex and return to an asset-light model.
A strategic review is taking place to accelerate this process.