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PR Newswire
12-08-2015, 10:43 AM
CB is highly sought-after by PEs, due to lower risk and equity participation. The company is under-pressured to offer a good deal to PEs...
(not vested)
Noble Group mulls raising funds from strategic investor: source
SINGAPORE (Aug 12): Noble Group ( Financial Dashboard) is considering issuing a convertible note to a strategic investor, one of several steps the commodities trader is assessing to revive investor confidence after a damaging accounting dispute, a person with direct knowledge of the situation told Reuters.
The source, who spoke on condition of anonymity because of the sensitivity of the matter, said Noble's shareholders and partners have urged the Singapore-listed company to make a deal that would strengthen its ties with a credible partner, a move that could possibly bring in new business.
A spokeswoman for Noble declined to comment on the matter.
Noble has been approached by investors interested in its commodities contracts, valued at US$4.1 billion, and it does not rule out the option of going private, the source added.
By issuing a convertible security rather than tapping shareholders for additional equity Noble would secure funding, avoid near-term dilution and offer the partner a cheap entry into the company, which has lost about 50% of its market value since its contract assumptions came under attack in February.
“(A convertible) sends a strong message to the market. It makes sure that Noble does not do something that is dilutive to equity at a time when the company does not need additional equity,” the source said but stressed that there is no certainty that a deal will take place.
...
http://www.theedgemarkets.com/sg/article...tor-source
(not vested)
Noble Group mulls raising funds from strategic investor: source
SINGAPORE (Aug 12): Noble Group ( Financial Dashboard) is considering issuing a convertible note to a strategic investor, one of several steps the commodities trader is assessing to revive investor confidence after a damaging accounting dispute, a person with direct knowledge of the situation told Reuters.
The source, who spoke on condition of anonymity because of the sensitivity of the matter, said Noble's shareholders and partners have urged the Singapore-listed company to make a deal that would strengthen its ties with a credible partner, a move that could possibly bring in new business.
A spokeswoman for Noble declined to comment on the matter.
Noble has been approached by investors interested in its commodities contracts, valued at US$4.1 billion, and it does not rule out the option of going private, the source added.
By issuing a convertible security rather than tapping shareholders for additional equity Noble would secure funding, avoid near-term dilution and offer the partner a cheap entry into the company, which has lost about 50% of its market value since its contract assumptions came under attack in February.
“(A convertible) sends a strong message to the market. It makes sure that Noble does not do something that is dilutive to equity at a time when the company does not need additional equity,” the source said but stressed that there is no certainty that a deal will take place.
...
http://www.theedgemarkets.com/sg/article...tor-source
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