Noble Group Explained

Noble Resources Trading Holdings Limited
Native Name:來寶集團
Type:Private
Industry:Commodity Trading
Products:Energy, Metals, Minerals, Logistics
Revenue:US$46 billion (2016)
Num Employees:500 (2019)
Founder:Richard Samuel Elman
Predecessor:Noble Group Ltd
Location:Hong Kong
Homepage:www.thisisnoble.com

Noble Resources Trading Holdings Limited (commonly known as Noble resources) is a commodity trader based in Hong Kong. It trades energy products and industrial raw materials. Its predecessor, Noble Group Ltd was embroiled in an accounting fraud controversy started in 2015 which eventually necessitated a debt restructuring.

History

In 1997, Noble resources was listed on the Singapore Stock Exchange.[1]

In 2002, Noble resources was included in the Fortune 500.

In 2009, China's sovereign wealth fund, China Investment Corp (CIC), took a 14.9% stake (573 million shares) in the company.[2]

In 2012, Completion of Gloucester coal and Yancoal merger.[3]

In 2014 CIC cut its stake in Noble resources to less than 10%.

A consortium led by COFCO Group acquired 51% of Noble's agricultural business, forming JV Noble Agri.[4]

Accounting fraud controversy and restructuring (2015-2019)

In 2015, Noble's share price tumbled as it was accused of accounting fraud by Iceberg Research,[5] while its credit rating was downgraded to junk. The remaining 49% of its agricultural business was also sold.[6]

Noble recorded net losses of $1.7 billion in 2015.

On 29 May 2016, CEO Yusuf Alireza was terminated by Elman. In 2017, Alireza sued Noble for compensation.[7] [8]

In 2018, Noble Group Ltd was de-listed from the Singapore Stock Exchange. The share price had collapsed 99% since Iceberg exposed Noble. Declaring a default, it went through a restructuring process that eventually led to the creation of Noble Group Holdings Ltd,[9] while Noble Group Ltd, which incorporated in Bermuda is undergoing an winding up process through till end of 2019.[10] The Singapore Stock Exchange blocked the listing of the restructured group on the uncertainty of the Noble's financial position.[11] A criminal investigation on the alleged wrongdoings of Noble Group Ltd is under way in Singapore.[12]

In 2019, Noble made several hires to rebuild its liquefied natural gas business.[13]

External links

Notes and References

  1. Web site: 2019 Results. Thisisnoble.com. 2015-07-31. https://web.archive.org/web/20190530093801/http://www.thisisnoble.com/images/documents/announcements/2019q1/nghl_q1_2019_results_20190430.pdf. 30 May 2019. live.
  2. Web site: CIC Buys 15% Stake in Noble Group to Gain Commodities. Bloomberg.com. 2015-07-31. https://web.archive.org/web/20150924185007/http://www.bloomberg.com/apps/news?pid=newsarchive&sid=atgmiy6i5IWI. 24 September 2015. live.
  3. Web site: Proposed Merge. Infopub.sgx.com. 2015-07-31. https://web.archive.org/web/20150610131636/http://infopub.sgx.com/FileOpen/Y_060312.ashx?App=Announcement&FileID=72583. 10 June 2015. dead.
  4. Web site: China's COFCO to pay $1.5 billion for stake in Noble's agribusiness. Reuters.com. 2015-07-31. https://web.archive.org/web/20150610134620/http://www.reuters.com/article/2014/04/02/us-noble-group-cofco-idUSBREA3103E20140402. 10 June 2015. live.
  5. Web site: Archived copy . 21 May 2018 . https://web.archive.org/web/20171115142042/https://icebergresearch.files.wordpress.com/2015/02/report-1-associates-and-agri-15022015.pdf . 15 November 2017 . live .
  6. Web site: Noble rating cut to 'junk' as commodities continue to tumble. SCMP. 23 May 2017. https://web.archive.org/web/20170625043245/http://www.scmp.com/business/companies/article/1896650/noble-rating-cut-junk-commodities-continue-tumble. 25 June 2017. live.
  7. News: Ex-Noble Group's CEO Alireza Sues Founder Elman for $58 Million. 2017-06-14. Bloomberg.com. 2017-10-21. https://web.archive.org/web/20171021163757/https://www.bloomberg.com/news/articles/2017-06-14/ex-noble-group-ceo-alireza-sues-founder-elman-for-58-million. 21 October 2017. live.
  8. Web site: Noble's former CEO sues founder for $80m in shares. hermes. 2017-06-15. The Straits Times. en. 2019-09-01.
  9. Web site: Noble Group completes US$3.5 billion restructuring to emerge as smaller, unlisted firm . CNA . en . 2019-08-28 . https://web.archive.org/web/20181220134208/https://www.channelnewsasia.com/news/singapore/noble-group-completes-us-3-5-billion-restructuring-to-emerge-as-11048402 . 20 December 2018 . live .
  10. Web site: Noble Group urges shareholders to receive shares in Noble Holdings . 2018-09-04 . Singapore Business Review . en . 2019-08-28 . https://web.archive.org/web/20190812123939/https://sbr.com.sg/energy-offshore/news/noble-group-urges-shareholders-receive-shares-in-noble-holdings . 12 August 2019 . live .
  11. Web site: Singapore authorities block Noble's relisting plans . CNA . en . 2019-08-28 . https://web.archive.org/web/20190505054719/https://www.channelnewsasia.com/news/singapore/singapore-authorities-block-noble-relisting-plans-restructuring-11007202 . 5 May 2019 . live .
  12. Web site: Noble Group under investigation for suspected false statements, breaching disclosure requirements . CNA . en . 2019-08-28 . https://web.archive.org/web/20181121184624/https://www.channelnewsasia.com/news/singapore/noble-group-under-investigation-for-suspected-false-statements-10949746 . 21 November 2018 . live .
  13. Web site: Exclusive: Humbled Noble Group seeks to rebuild LNG, energy businesses: sources . dead . https://web.archive.org/web/20190828155203/https://kfgo.com/news/articles/2019/aug/21/exclusive-humbled-noble-group-seeks-to-rebuild-lng-energy-businesses-sources/929419/ . 28 August 2019 . 2019-08-28 . The Mighty 790 KFGO.

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