Noble sells American energy retailing unit for $1.4 billion

It completes the firm's $2.75bn capital raising initiative.

Noble Group announced the sale of its Noble Americas Energy Solutions subsidiary (NAES) to Calpine Corporation.

The consideration for the divestiture consists of USD 800 million (S$1.1bn) plus the repayment to Noble of NAES working capital at closing which as of the latest set of audited accounts was USD 248 million (S$341m).

In addition, operating cash flows from NAES will continue to accrue to Noble up until closing of the transaction, at which point there will be a final adjustment for any changes in working capital.

Furthermore, the divestiture releases approximately USD 275 million (S$378m) in Letters of Credit and Surety Bonds representing additional working capital which will become available to Noble.

"The sale of NAES substantially completes the USD 2 billion (S$2.75bn) capital raising initiative that we announced in June", said Noble’s Co-CEOs, Jeff Frase and Will Randall. "With this divestiture, Noble will continue to reduce debt while also funding growth opportunities in our high return businesses" added Mr. Frase and Mr. Randall.

Closing of the divestiture is subject to approval by Noble shareholders, expiration of the Hart Scott-Rodino waiting period and approval of the U.S. Federal Energy Regulatory Commission under Section 203 of the Federal Power Act.

It is expected that the transaction will close in December 2016.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia