Noble shares rise 50pc after deal with Goldilocks

SINGAPORE: Noble Group shares surged more than 50 per cent yesterday after the embattled commodities trader sealed a deal with a major investor, paving the way for a debt restructuring.

The former stock market darling had been teetering on the brink of collapse after being hammered by plunging commodity prices, a ratings downgrade and allegations of irregular accounting practices.

It sold off assets and embarked on a US$3.5 billion (RM14 billion) debt restructuring, but the plan ran into opposition from a major shareholder, Goldilocks Investment Co.

Noble suspended trading in its shares on the Singapore Exchange on Monday as it sought to negotiate a way out.

Goldilocks agreed to back a revised restructuring plan which raises shareholders’ equity in the company to 20 per cent, up from 15 per cent. Goldilocks also gets to nominate a representative to the Noble board of directors.

Abu Dhabi Financial Group, with which Goldilocks is affiliated, will also form a strategic partnership with Noble to explore opportunities in the Middle East.

Trading resumed yesterday after the agreement was reached, with Noble shares soaring as much as 57 per cent to S$0.085 (RM0.34). Goldilocks currently holds about 8.1 per cent of Noble’s shares.