Under the terms of the agreement, Cofco will acquire a 51% stake in Noble Agri Limited from Noble Group in an all-cash transaction to establish a 51/49% joint venture.
The transaction values Noble Agri equity at 1.15x 2014 book value. As at 31 December 2013, Noble Agri had shareholders’ equity of US $2.8bn and net debt of US $2.5bn.
Noble Agri will become the principal international origination platform for Cofco, with its upstream origination and trading operations linked to the downstream processing and distribution capabilities of Cofco and its affiliates in China to create a fully integrated value chain, consistent with Cofco’s strategy.
Source: Cofco
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