Noble Group: Its 87.7%-owned Gloucester Coal has proposed to acquire the following assets from Noble for A$269.5m: 1) a 27.52% interest in the Middlemount JV; 2) the right to acquire a further 2.48% interest in the Middlemount JV from Macarthur for a further A$8m, which is payable following completion of a certain shipping milestone and 3) an option to acquire a further 20% interest in the Middlemount JV from Macarthur for an exercise price of A$100m.
The total purchase price of A$437.5m payable to Noble for the Middlemount Acquisition will comprise a cash component of A$337.5m and the issue of A$100m worth of new Gloucester shares to Noble. The cash component will be partly funded via the equity raising thru a private placement. We understand the offer price of A$9.25 per new share is also the price at which new shares will be issued to Noble as part of the consideration for the Middlemount Acquisition.
Overall, we are slightly positive on this latest transaction as it allows Noble to free up its balance sheet resources for other acquisitions while streamlining its coal assets under Gloucester’s arm.
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