Can founder Richard Elman save Singapore-listed, Hong Kong-based commodity trader, Noble Group? This is the most pressing concern for shareholders as the crisis-hit company battled crisis after crisis for over two years. The latest news on investments from a surprise Middle East investment group, Goldilocks Investment Company (GIC), must have brought a huge relief for shareholders.
While I certainly do not deem GIC as Noble Group’s new white knight, the latest investment is a sign of endorsement for Noble Group. GIC is part of Abu Dhabi Financial Group, a diversified global group with asset management of USD5 billion. The Middle East investor has a reputation of buying distressed companies.
According to the SGX filing on 22 June 2017, GIC purchased 50,546,000 ordinary shares in Noble Group. Taken together with GIC’s existing 15,454,000 ordinary shares it purchased on 19 June 2017, GIC became a substantial shareholder of NGL on 20 June 2017.
I am careful not to label Goldilock as a new white knight as the investment is not a form of cash injection in return for equity stake. It seems that the Middle East investment group bought the shares from open market and built up its stake within two days of the week. Given that Noble Group is in the midst of raising capital, this development may not seem to provide much aid for the struggling commodity trader. But somehow, it is encouraging evidence that Noble Group still possess value which continues to attract global institution players.
The vote of confidence from a Middle East strategic investor came on the back of recent extension of credit facility with several banks. Shareholders can certainly do with these slew of good news as Noble Group has been hit by relentless crises for more than two years. The troubles it encountered seem so …Read more