Deals
China Inc. Steps Up to Support Noble Group as CIC Takes Shares
- CIC’s support is of ‘utmost importance’, Chairman Elman says
- Sovereign wealth fund will get a second seat on Noble’s board
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Noble Group Ltd. has turned in its hour of need to China Inc., with the country’s sovereign wealth fund standing by the embattled commodities trader as it rolls out a rights issue to boost its finances and Chairman Richard Elman plans to step down.
The Hong Kong-based company will offer 1 rights share for each existing share at 11 Singapore cents, a 63 percent discount from the close on Thursday, according to a statement on Friday. Of the new shares, biggest holder Elman has agreed to take 625.5 million, less than his full entitlement, while China Investment Corp., the third-largest, will take 630.6 million, all of its portion. CIC will now get a second seat on the board.