October 16, 2006

 

Noble Group acquires two more soybean crushing facilities in China
 

Press release
 

 

Noble Group, a global supply chain manager of agricultural, industrial and energy products, announced that it has signed an agreement to purchase two soybean processing facilities in China. 

 

One plant, located in Fuling, Chongqing municipality, will be purchased from Singaporean company Great Wall Investments Pte. Ltd.  A second plant, located in Longkou, Shangdong province, will be purchased from another Singaporean company, Sino Agri-Trade Pte. Ltd.  The Group seeks to purchase 100 percent of the shares in both soybean crushing and soybean and palm oil refining ventures.

 

The aggregate consideration to be paid by Noble for the acquisition is approximately US$18 million, which will be subject to certain post-closing adjustments.  The consideration will be funded from Noble's internal cash resources and bank borrowings, with the amount of consideration determined on a willing-buyer, willing-seller basis, taking into consideration the net asset value of the companies. As of Oct 13, 2006, the book value of assets to be acquired by Noble was approximately US$34 million.

 

This represents the Group's third investment in soybean processing in Mainland China this year, after it acquired a plant in Qinzhou, Guangxi province, in April.  The three acquisitions join the Group's portfolio of three soybean crushing facilities in India and leased crushing capabilities in Turkey and Egypt.  Noble plans to expand its soybean crushing capacity globally.

 

Subject to certain pre-conditions being met, the agreement is expected to close in 2006.

 

Commenting on the news, Noble Group's COO Ricardo Leiman said, "These acquisitions further strengthen Noble's soybean supply chain.  Complementing the soybean crushing and refining facility in Qinzhou, Guangxi, that we acquired earlier this year, these facilities will enable us to supply a wider range of customers in China with feed ingredients and edible oils."

 

For further details, please contact:

 

Louisa Tam                                         Brad Smolar

Noble Group Limited                            Smolar Limited

Tel: +852-2861-3511                          Tel: +852-2522-0268

Fax: +852-2527-0282                          Fax: +852-2573-2473

E-mail: noble@thisisnoble.com              E-mail: reputation@smolar.com