Noble Group sells US energy business
Hong Kong-headquartered commodity giant Noble Group has agreed a deal for the sale of its US electricity business, Noble Americas Energy Solutions, to Calpine Corporation for $1.05bn.
Noble announced their intention to sell the business in May, appointing Morgan Stanley and HSBC to find a buyer. The deal agreed with Calpine is made up of $800m plus the repayment of Noble Americas Energy Solutions working capital at the closing of the deal.
“The sale of NAES substantially completes the $2 billion capital raising initiative that we announced in June,” said Jeff Frase and Will Randall, Co-CEOs of Noble.
The deal is expected to be closed by the end of the year, however is still subject to approval by Noble shareholders, expiration of the Hart Scott-Rodino waiting period and approval of the U.S. Federal Energy Regulatory Commission.
Noble Group shares have risen almost 7% on the back of the announcement.