Noble: halt to be lifted at 9am this morning. To buy US-based energy retailer Sempra Energy Solutions, which markets retail power, energy and electricity in 16 states, for US$317m plus assumption of US$265m in debt. Acquisition will allow Noble to gain access to >6m barrels of storage capacity and broaden its refined product distribution, trading and mktg network in the US…
Acquisition is in line with Noble’s strategy to quickly build its energy business in the US, and follows recent acquisitions of Northville Product Services, a storage facility and distribution platform, and 5% stake in USEC, a uranium enrichment company. Move is positive, as deal should contribute to earnings quickly (~US$85m net profit or $0.02 EPS), with little impact to balance sheet. Valuation seems reasonable at 4.2X historical EV/EBITDA or 3X PER...
Morgan Stanley, KE maintain Buy with $1.89, $2.01 targets.
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