Noble

Noble: has proposed to sell 100% of TMM, which owns a liquid bulk terminal at the port of Itaqui in Brazil, to Ultrapar Participacoes SA (listed in Bovespa and NYSE). The sale is subject to approvals from the local port authority, owner of the land where the railway serving TMM is located, and from Ultrapar’s shareholders. Total consideration will comprise, i) R$68m (derived from TMM’s enterprise value of R$160m less est net debt of R$91.2m and est working cap adj of R$0.8m), and ii) additional consideration of no less than R$12m over the 7 yrs after closing provided certain conditions are met. * USD 1 = approx 2 Brazilian Real As at end Mar’12, TMM had net liability of US$3.4m, and negative net tangible asset value of US$5.9m. While Noble is likely recognize a one-off gain on completion of the transaction, the sale proceeds from TMM is small relative to Noble’s asset size of US$5.5b. Hence see minimal financial impact. The stock trades at 1.1x P/B, 16.2x P/E.