Noble Group completes disposal of Noble Americas Corp for $528.88m
But the proceeds are lower than the $760.27m figure disclosed to shareholders.
Noble Group Limited completed the sale of its Noble Americas Corp (NAC), concluding the monetisation of its global oil liquids and North American gas and power businesses.
According to an announcement, Noble closed the sale of all NAC's capital stock to Vitol US Holding Co. (Vitol). Net proceeds hit $528.88m (US$400m).
Vitol paid $359.64m (US$272m) to Noble with $161.31m (US$122m) placed in escrow and $7.94m (US$6m) payable by the group towards transaction costs.
The $528.88m (US$400m) net proceeds are lower than the $760.27m (US$575m) figure given to shareholders in a circular released 2017.
Noble said that the final net proceeds from the sale of NAC would take into account operating expenses of NAC borne by the group to the closing date and other adjustments determined in accordance with the terms and conditions of the stock purchase agreement.
Moreover, the company said the decrease in estimated net proceeds is primarily due to operating losses of NAC from 1 October 2017 to the closing date.
"These operating losses were driven by reduced trading operations, as the business was prepared for sale, which prevented NAC from covering its fixed expenses," it added.
More From Singapore Business Review
