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| CIC to take 12.9% stake in Noble Group for US$850m |
| 22 Sep 2009 |
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Mainboard-listed commodity trader, Noble Group, will raise 850 million US dollars by selling a 12.9 percent stake to China Investment Corporation, or CIC, in a private placement.
It's placing out 438 million new shares and 135 million shares owned by its CEO Richard Elman to CIC at 2 dollars 11 cents each.
Noble says the shares sold by its founder, Mr. Elman, represent a small fraction of his holdings in the firm and are only the second such sale since he founded the company.
It adds that the move will provide it with additional capital to pursue strategic investments in key agricultural markets globally.
CIC and Noble have agreed to enter this partnership to jointly invest in infrastructure assets and supply chain management related agricultural commodities.
The Chinese sovereign wealth fund says the move to take a stake in Noble is part of its ongoing strategy to diversify its investments.
Merrill Lynch was the sole placement agent for Noble. |