Noble Group

Noble did not sold its stake in Yancoal Australia. It holds its stake as a long term strategic investment.

Noble sold Gloucester Coal at a great price, causing too much pain for Yancoal now.

(09-07-2013, 10:12 PM)freedom Wrote: Noble did not sold its stake in Yancoal Australia. It holds its stake as a long term strategic investment.

Noble sold Gloucester Coal at a great price, causing too much pain for Yancoal now.

oops.. sorry got it mixed up.
Noble’s 13.2% stake in Yancoal Australia is worth around 91.9 million Australian dollars (US$84.7 million)

Notification of Subsidiary

Quote:

Noble Group Limited (the “Company”) wishes to announce that on 3 October 2013, the Company’s wholly-owned subsidiary, Cassey Holdings Limited, acquired 100% beneficial interests of PT Andhika Raya Semesta (“PT ARS”), a company incorporated in Indonesia, for an aggregate consideration of IDR55,000,000. The consideration was agreed on a willing-buyer, willing-seller basis, taking into account, inter alia, the future business development of PT ARS. The consideration was satisfied in cash and funded from internal resources.

As at the date of acquisition, PT ARS had an issued and paid-up capital and a book value of IDR55,000,000 and net tangible assets of IDR55,000,000.

The above transaction does not amount to a discloseable transaction for the purposes of Chapter 10 of the SGX-ST Listing Manual.

Sundance strikes supply deal with Noble
BARRY FITZGERALD THE AUSTRALIAN MARCH 26, 2014 12:00AM

ASX-listed Sundance has secured a critical supply deal with global commodities trader Noble for its planned $US4.7 billion ($5.1bn) central African iron ore project.

The offtake deal, under which Noble would buy all of the planned mine's annual production of 35 million tonnes for 10 years, is expected to assist in Sundance's debt funding plans for the project.

It also means that Sundance is sticking to its aggressive timetable under which first high-grade production from the Mbalam-Nabeba project could be possible in the last quarter of 2017.

Mbalam-Nabeba straddles Cameroon and the Republic of Congo in central Africa, and was the scene for the 2010 tragedy in which 11 people, including all six Sundance board members, were killed when a chartered plane crashed on its way to the project.

It is expected to be the lowest-cost hematite iron ore producer in the world (at about $US21 per tonne) in its first stage of production, setting it apart from other would-be developments over which the recent decline in iron ore prices has raised question marks.

Sundance shares closed 1c up at 9.9c in response to news of the support for Mbalam-Nabeba from Noble, taking its market capitalisation to $304m.

Sundance stopped well short of describing the agreement with Noble as binding. Rather, it described it as sufficiently "firm" to "give financiers the comfort they need to provide debt funding."

Sundance is seeking equity partners in the project and it is a feature of the Noble agreement that equity participants could buy up to 50 per cent of the planned production.

Sundance continues to run an engineering and construction tender for the project's rail and port, and a separate tender for the mining operation.

It has received two bids for the project's infrastructure needs, one from Europe and one from China. It also has two financing offers.

Sundance chairman George Jones said certainty around offtake for Mbalam-Nabeba's output was a "building block" in financing of the project.

"From this we hope to get firm bids," he said, adding that the process should be completed by June. "Once we have finalised the price for the infrastructure we can then finalise what the finance package will look like."

Mr Jones said that because of the project's high grade and other qualities of the iron ore, the product would be keenly sought.

His view is that despite recent weakness in prices, iron ore will continue to trade within a $US110-$US130 band. "Prices will dip below that sometimes, and sometimes it will spike above it."

For those vested and interested

(not vested)

China’s COFCO to pay $1.5 billion for majority stake in Noble agribusiness

SINGAPORE — COFCO Corp will pay an initial $1.5 billion to buy a 51 percent stake in Noble Group’s agribusiness, its second acquisition in less than two months as China’s largest grain trader seeks to strengthen its position in global markets.

The two companies plan to form a joint venture, in which Noble will retain a 49 per cent stake, that will link COFCO’s grain processing and distribution business with Noble Agri’s grain origination and trading business, Noble said today (April 2).

The move follows COFCO’s purchase of a 51 per cent stake in Dutch peer Nidera in late February to gain direct access to South American grain and oilseed supplies in a deal that valued Nidera at $4 billion including debt.

It also comes after a wave of consolidation in the world agribusiness sector has shrunk the number of potential acquisitions for COFCO to bulk up enough to compete globally with larger rivals ADM, Bunge Ltd, Cargill Inc and Louis Dreyfus Corp, known as the ABCDs.
...
http://www.todayonline.com/business/chin...ribusiness

The deal has a fixed 1.15x book value - so if Noble Agri's business were to turn better (e.g. due to improving sugar price, etc) between now and end of the year; Noble will receive more for the disposal; and vice versa. From what I gathered so far, the agri business should be turning up?

Recent sales proceeds earmarked for recycling liao...

Private equity outfits put on notice
BARRY FITZGERALD THE AUSTRALIAN APRIL 02, 2014 12:00AM


BHP Billiton's Worsley aluminium operation ... BHP has indicated that it could “demerge” $US15bn-$US20bn in non-core assets. Source: Supplied

MICK Davis made his fortune and that of Xstrata as an ­aggregator of unloved mining ­assets at low points of the commodity and equity cycles.

Since Xstrata was swallowed up by Glencore last year in a $US29 billion takeover, Davis has been preparing for a repeat performance for his new resource play, which funnily enough goes by the name of X2 Resources.

In London on Monday, Davis announced X2 had secured $US3.75bn ($4.04bn) from trading company Noble Group and US private investment firm TPG, among others. That X2’s success in pulling in some big-time funding came the day before BHP Billiton’s indirect confirmation that it could “demerge” as much as $US15bn-$US20bn in non-core assets is one of those happy coincidences of life.

And it was. But by not cate­gorically denying demerger talk, BHP has effectively told any would-be buyers of the unloved assets — including X2 — that they had better get a move on and make some offers.

It has been estimated X2 and other private equity buyers have $US15bn to spend on picking up discarded assets from BHP, and Rio Tinto for that matter. Some put the figure at $US50bn.

And there is no reason to doubt that they all like the thought of potentially acquiring some of the better assets that BHP has earmarked for sale in aluminium, nickel, thermal coal, manganese as well as in silver/lead/zinc. But the threat that BHP might just wrap them up into one bundle and demerge the lot to shareholders, as it did with its steel interests in the early 2000s, adds a complication for would-be trade and private equity buyers.

To head that off, proposals need to be put forward now. To keep that pressure up on buyers, BHP will have to be at its best to convince anyone it is seriously considering bundling up its unwanted assets for a demerger.

Stand by for some lectures on the diversity of assets to be included, and their ability to offset each other at differing points in the commodity price cycle.

There will also be much discussion that the unwanted assets actually share something in common, and that is they are all knee-deep in the upstream part of the businesses: smelting and refining.

But aren’t the low returns that end of the industry delivers the reason why these very assets have become unloved? BHP will have to do better than that, ­particularly as clinical one-off asset sales to the likes of X2 and others will remove one of the main ­concerns around some of the ­assets — their environmental legacy.

Then there is the well-held ­belief among investors that the $US15bn BHP might be able to raise in one-off sales would provide a handy backstop to the promise of increased shareholder returns through dividend increases and share buybacks.

That is what BHP shareholders really want, not an over- financially engineered response to the simple fact that it is the group’s big four of iron ore, copper, petroleum and coking coal that produce 90 per cent of its profits, a situation that looks like staying that way until the aluminium and nickel industries that China has built in quick fashion fall over.

That’s not about to happen.

HOCK LOCK SIEW
Is Cofco deal short-changing Noble shareholders?
By
Angela Tan
angelat@sph.com.sg
print |email this article
Cofcoagricultrue1004

The final price will be equivalent to 1.15 times the 2014 book value of Noble's agricultural business - PHOTO: REUTERS

LAST week, Noble Group said it was selling a 51 per cent stake in its agricultural business to China's Cofco Corp for an initial US$1.5 billion. The final price will be equivalent to 1.15 times the 2014 book value of Noble's agricultural business. Based on Noble Agri's audited book value of US$2.8 billion for FY2013, the deal values it at US$3.22 billion.

The prospect of a deal with Cofco has fuelled Noble's share price by more than 20 per cent since the start of the year. Noble shares gained 10 per cent in the two days since the announcement was made, hitting S$1.32 a share. The last time Noble shares were trading around S$1.30 was back in October 2012. The US$1.5 billion deal came as a pleasant surprise for investors since the market valuation for the loss-making agribusiness was closer to US$700 million when Noble first contemplated a separate listing.

However, as the initial euphoria begins to settle, Noble shareholders are left wondering if the company could hold out for more. They can't help but compare the deal to the 1.4 times seen in the tender offer made in March by Temasek Holdings, Singapore's investment group, for Olam - Noble's closest rival on the Singapore Exchange. Temasek has offered S$2.23 a share, valuing Olam at S$5.3 billion.

But apart from the fact that Noble and Olam share the same agricultural space, is it fair to compare the two deals?

On the one hand, defenders of the Noble-Cofco deal argue that the difference in valuation reflects the fact that Noble's agribusiness is loss-making, while Olam is profitable. The former contributed US$15.50 billion in revenue but lost hundreds of millions in 2013 for the group. In contrast, Olam made S$348.6 million in net profit excluding exceptional items and generated S$20.80 billion in revenue for its fiscal year ended June 30, 2013.

On the other hand, others have stressed that the intent of Cofco and Temasek is different.

In Olam's case, Temasek is merely a financial investor that already has a 24.6 per cent interest at the time of offer. It is buying Olam shares, presumably because it sees value in agricultural trading.

In Noble's case, state-owned Cofco has a larger agenda. It needs to ensure the security of China's overseas food supply. This is evident in its shopping cart, which includes its purchase of a 51 per cent stake in Nidera BV, a Dutch grains trader, for US$1.289 billion in February for better access to grain-growing regions such as Latin America and Russia. For US$1.5 billion, Cofco will be able to minimise its exposure to the global price volatility and source key commodities directly, eliminating intermediaries.

So arguably, given the importance of Noble's assets, which include a vast network of ports and commodity terminals, to Cofco, could Noble hold out for more?

It is hard to say. But what's clear is that for now, it seems Noble needs Cofco just as much as Cofco needs the former and the market has embraced this.

With Cofco taking a 51 per cent stake, Noble is not bailing out entirely of its agribusiness. Instead, via the new joint venture, it is able to cut its exposure to its loss-making operations while sharing in a potential recovery. With Cofco, Noble has secured a conduit to China, the world's biggest consumer market. As an analyst succinctly pointed out: Noble provides the pipeline and Cofco brings in the volume. Cofco will ensure the relevance of Noble's assets which include four sugar mills in Brazil, soyabean crushing plants in Argentina, Paraguay and Uruguay, and grain silos in Ukraine, alongside a vast network of ports and commodity terminals.

With Cofco, Noble is roping in a partner with deep pockets to take over its smallest business division. The joint venture will take on the US$2.5 billion net debt of the agricultural business, significantly cutting Noble's debt which stood at US$4.9 billion end-2013. With a higher credit rating than Noble, Cofco as a partner can only be credit positive.

The fresh funds provide more flexibility for Noble to take its agribusiness, as well as energy and metals operations, to the next level, something the market seems to be waiting for with bated breath.

A better question to ask is who can question the logic behind Temasek' decision to privatize Olam and many other decisions made by Temasek.

Over the year, Temasak has proven their ability to take care of the interest of Singapore. The logic of the purchase is not something difficult to understand. 1 potential profit from the raising food price in long run. 2 same as China, to gain control on supply chain to enhance food security of Singapore.