May 3, 2011 [Opis] - Singapore-listed Noble Group, an oil player in the U.S. cash and rack markets, has received more investment from another sovereign wealth fund. Korea Investment Corporation (KIC) joins China's sovereign wealth fund, China Investment Corporation (CIC), who became a Noble shareholder in September 2009.
Noble said that KIC had acquired a significant and strategic stake in the company, which could amount to slightly more than $100 million or about a 1% share of the company. This is in addition to a 14% stake acquisition at Noble by CIC, the second largest stakeholder behind Noble Holdings Limited’s 21.34% share.
In late 2009, Noble was flush with an $850 million cash investment from CIC, but a big chunk of that fund has probably been used for acquisitions since then. For the latest investment from KIC, the shareholding was arranged through the purchase of 59,283,851 shares from Noble Holdings Limited (NHL), a vehicle associated with Noble founder and chairman, Richard Elman. After the sale to KIC, NHL will retain a 21.34% interest in the Group. Noble and KIC intend to establish an ongoing co-operative business and strategic partnership for the purposes of jointly investing in infrastructure assets and supply chain management activities.
Meanwhile, Noble shares on the Singapore Stock Exchange rose 3cts to S$2.23 (US$1.825) last Friday, with the 52-week range at $1.54-$2.40. The Singapore financial markets were closed for a public holiday on Monday.
