Noble Group

[CityFarmer]

More share-buy-back from the company on 12 June, another 25 million shares. It is approx 0.7% of outstanding shares bought so far. The bullets used were approx S$32 mil, more bullets in the pipeline?

(not vested)

http://infopub.sgx.com/Apps?A=COW_CorpAn...3e3ea05a4f

[greentea]

Noble mulls more disclosure initiatives
- Despite company's reassurance and share buyback, stock resumes fall in the face of an S&P outlook downgrade

"The board, amongst other areas, is looking at introducing further initiatives around disclosure and the use of additional oversight of some balance sheet items," Noble's head of corporate affairs Stephen Brown told The Business Times in an e-mail.

The group is also conducting an internal review of its business to downsize or close underperforming units, while growing those with the best returns.

"Even as we continue to pursue our growth initiatives, we are also mindful that the returns on the capital we deploy have to generate strong returns for shareholders," he said in response to queries by BT on Noble's plans to defend its share price and address investors' concerns.

BT piece from Saturday: http://btd.sg/1TnhGkJ

[CityFarmer]

More share-buy-back from the company on 12 June, another 25 million shares. It is approx 0.7% of outstanding shares bought so far. The bullets used were approx S$32 mil, more bullets in the pipeline?

(not vested)

http://infopub.sgx.com/Apps?A=COW_CorpAn...3e3ea05a4f

Share-buy-back on 15 June, 13 million shares more, costed slightly more than S$9 million. Total up-to-date, is around 0.9% of outstanding shares. It is still far from authorized amount of approx 10% of outstanding shares.

http://infopub.sgx.com/Apps?A=COW_CorpAn...0779efc1cd

(not vested)

[egghead]

Noble's Letter to Michael Dee

[cfa]

Some Banks Seek to Cut Exposure to Noble Group Loan

ANZ is one of 15 banks that took a role in arranging Noble’s $2.25 billion revolving credit facility

http://www.wsj.com/articles/anz-trying-t...1434452011

[CityFarmer]

Some Banks Seek to Cut Exposure to Noble Group Loan

ANZ is one of 15 banks that took a role in arranging Noble’s $2.25 billion revolving credit facility

http://www.wsj.com/articles/anz-trying-t...1434452011

The banks VAR in play.

As we always aware, "A bank is a place where they lend you an umbrella in fair weather and ask for it back when it begins to rain."

[egghead]

In Noble's case, a total of 35 banks were involved in the US$2.3 billion facility. Say if ANZ resells part of its loan to another 5 banks, does that mean Noble is "forced" to start banking relationship with these 5 banks? Or does this happen only as interbank loan in between ANZ and these 5 banks?

Anyone care to comment?

[CityFarmer]

In Noble's case, a total of 35 banks were involved in the US$2.3 billion facility. Say if ANZ resells part of its loan to another 5 banks, does that mean Noble is "forced" to start banking relationship with these 5 banks? Or does this happen only as interbank loan in between ANZ and these 5 banks?

Anyone care to comment?

The "resell" means ANZ is reducing risk. I reckon an inter-bank loan, will not reduce the risk. The former seems more likely, IMO

(not vested, just comment with common sense)

[greentea]

And Michael Dee's response: http://businesstimes.com.sg/companies-ma...xtor=AL-18

In his rebuttal to Noble's letter, Mr Dee questioned how Yancoal can be considered an associate company, since Noble only owns 13 per cent of it (instead of the required 20 per cent). "How is that consistent with accounting standards and market practice? If you are so confident of your Yancoal book value release the full model, with all its assumptions, both before and after you recently wrote it down 40 per cent. Let the market decide if your assumptions that it is worth 30 to 50 times the market value are realistic and if Yancoal is worth what you say. You ask us to believe all your mark-to-market valuations yet you will not show us your work," said Mr Dee, asking Noble to release the full model.

[specuvestor]

^^ still on market price and Yancoal

It doesn't take a lot to calculate the value of listed Yancoal and compare to book value. It takes a lot more to estimate the value of Yancoal to Yanzhou Coal. A large chuck of the cashflow goes to repay loan and interest, which I suspect it's an LBO of Gloucester coal gone awry

IMHO Iceberg report is simplistic to accounting technicalities compared to Anonymous report. I have no vested interest but sharing what I observe.

More details here: http://www.valuebuddies.com/thread-457-p...#pid107256

Technically both Olam and Noble can shrink their working capital hence debt by reducing revenue, but by doing so will lower profit. Question is how not to make this a vicious cycle with declining stock price. Olam had Temasek as confidence backstop

In Noble's case, a total of 35 banks were involved in the US$2.3 billion facility. Say if ANZ resells part of its loan to another 5 banks, does that mean Noble is "forced" to start banking relationship with these 5 banks? Or does this happen only as interbank loan in between ANZ and these 5 banks?

Anyone care to comment?

The "resell" means ANZ is reducing risk. I reckon an inter-bank loan, will not reduce the risk. The former seems more likely, IMO

(not vested, just comment with common sense)

Likely will be a CLO type of structure to pass on the risk, so noble's relationship is still with ANZ