Noble Group's US$95 mln deal to sell vessels fails to take off

Noble Group logo. Reuters

Embattled commodities trader Noble Group on Friday said a deal to sell four of its Kamsarmax dry bulk carrier vessels for US$95 million fell through as the buyers failed to obtain approval from their respective boards.

Noble, last year in November, announced its plan to dispose vessels that would have generated net proceeds of about US$30 million. The disposal was expected to close between March 10 and May 31.

However, in a meeting on February 1, buyers and the parent company of the buyers failed to obtain approval from their respective board of directors, Noble said in a regulatory filing.

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Noble said since the date of the sale announcement, the market value of Kamsarmax dry bulk carrier vessels has increased.

The vessels are now valued at an aggregate of US$95 million compared to the prior average aggregate valuation of US$92.25 million.

In addition, Noble said that the vessels are profit generating and cash flow positive.

Noble Group commenced discussions with interested third parties regarding the sale of vessels, the company said.

The Hong Kong-based firm, which is in talks with investors to address its deteriorating financial position, has been forced to shrink its business, exiting loss-making and non-core operations in order to survive.

Noble Group shares were unchanged at S$0.24 on the Singapore Exchange.

This article was first published on February 2, 2018