Corporation to Sell its Stake with Known Commodities Trader at a Discounted Price
China Investment Corp. is planning to sell a part of their stake with Noble Group Ltd. at a 5 percent discount which send shares in the commodity trading tumbling and ignited fears that the China Investment Group is moving to offload most of their holdings. The Chinese sovereign wealth fund which is noble’s second largest share holder is also selling shares with an equivalent of 4.5 percent of the commodity trader.
The price for the sales is placed at US$1.04 at the bottom of the price range going up to US$1.35 and is said to be worth around 310 million. No details were given why China Investment Corp. is selling their stake, but according to a analyst from the Bank of America, that they are not expecting any damage to Noble’s relationship with Chinese investors.
The new deal will coincide along with the completion of Noble’s $1.5 billion sale of its 51 percent stake in their venture in agricultural products to COFCO one of China’s largest grain trader which is considered a more important relationship. Furthermore investors are concerned on whether China Investment Corp. move to dispose the rest of their stake of 9.4 percent based on calculations and China Investment Corp. will continue to be a substantial holder of Noble’s shares.
One of Asia’s largest commodities trading companies Noble stated that it was aware of the reports on the planned sales of stakes by China Investment Corp and was awaiting for any confirmation before making its own announcement.