Noble buys additional 52.5% stake in East Energy Resources for $940,428

EER paid a debt worth US$21m to Noble.

Noble Group subsidiary Maylion bought an additional 52.5% stake in Australia-listed coal exploration company East Energy Resources (EER) for $940,428 (A$930,000).

Prior to the transaction, Maylion held a 40.9% shareholding in EER. According to an announcement, the additional shares were issued in satisfaction of a debt owing to Noble by EER.

The debt has a face value of around A$28m (US$21m) and has been fully impaired since Q3 2017. “On the basis of the foregoing, the consideration paid by the company for the transaction was effectively nil,” Noble said.

It added that the book value and net tangible asset value attributable to the additional shares was nil.

Following the transaction, Maylion’s shareholding in EER has increased to 93.4%. EER has also ceased to be an associated company of Noble and has become its subsidiary of the company.