Noble Group shareholders are expected to approve the sale of the company’s stake in its agricultural unit on Thursday as the commodity trader seeks to revive its fortunes by cutting debt, bolstering investor confidence and regaining its investment-grade credit rating.
Stockholders will attend a special general meeting in Singapore to vote on the sale of the 49% holding in Noble Agri to Cofco Corp. for at least US$750 million ($1.1 billion). China’s top food company already owned the other 51%, bought for US$1.5 billion in 2014.
Noble Group has extended losses in 2016 after Standard & Poor’s joined Moody’s Investors Service in cutting the company’s credit rating to junk, deepening the challenges facing Chief Executive Officer Yusuf Alireza. The trader said this month that it’s confident the deal will be approved, and will help its rating metrics to exceed those required for investment-grade credit. The meeting offers executives an opportunity to address shareholder concerns and chart a way forward amid the commodity rout.
“The major shareholders are in support of the deal,” said Carey Wong, a Singapore-based analyst at Oversea-Chinese Banking Corp. who rates the stock as a hold. “Everybody’s talking about the rating agencies. That is one of the near-term measures they can use,” he said, referring to the stake sale.
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Stockholders will attend a special general meeting in Singapore to vote on the sale of the 49% holding in Noble Agri to Cofco Corp. for at least US$750 million ($1.1 billion). China’s top food company already owned the other 51%, bought for US$1.5 billion in 2014.
Noble Group has extended losses in 2016 after Standard & Poor’s joined Moody’s Investors Service in cutting the company’s credit rating to junk, deepening the challenges facing Chief Executive Officer Yusuf Alireza. The trader said this month that it’s confident the deal will be approved, and will help its rating metrics to exceed those required for investment-grade credit. The meeting offers executives an opportunity to address shareholder concerns and chart a way forward amid the commodity rout.
“The major shareholders are in support of the deal,” said Carey Wong, a Singapore-based analyst at Oversea-Chinese Banking Corp. who rates the stock as a hold. “Everybody’s talking about the rating agencies. That is one of the near-term measures they can use,” he said, referring to the stake sale.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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