Noble Group yesterday said a proposed divestment of four dry bulk carrier vessels to further pare debt has fallen through as the buyers had failed to obtain approval from their boards before Feb 1, making the deal void.
The disposal of the freight vessels for gross proceeds of about US$95 million (S$125 million) had been approved by Noble shareholders at a special general meeting on Jan 25.
If the proposed sale had been completed, the net proceeds, after taking into account the repayment of the relevant mortgages attached to the vessels and deducting estimated transaction costs, would have amounted to about US$30 million, Noble said in a filing with the Singapore Exchange yesterday morning.
Noble noted that since the announcement of its deal for the vessels, the market value of the Kamsarmax dry bulk carrier vessels has risen, with the group having commissioned updated valuations of these assets on Feb 1. The updated valuation stands at an aggregate of US$95 million, up from US$92.25 million in a valuation last October.
The vessels are, in the current market, profit-generating and cash-flow positive and remain available for sale, and Noble has started discussions with interested third parties, it said.
It also said the vessels, and all proceeds from the sale, will form part of a new company arising from Noble's proposed financial restructuring, Asset Co.
Noble shares ended 1.5 cent down at 22.5 cents yesterday.