23 Sep 2009 08:34

CIC to purchase stake in Noble Group

Shanghai. September 23. INTERFAX-CHINA - State-owned China Investment Corp. (CIC) has signed an agreement with Singapore Stock Exchange-listed Noble Group Ltd., one of the world's largest iron ore traders, to buy a 12.91 percent stake in the latter, Noble Group announced on Sept. 21.

According to the announcement, Noble Group will issue 438 million new shares to CIC and Noble Group's chief executive officer Richard Elman will transfer 135 million shares to CIC for a total consideration of $850 million.

The transaction is still subject to approval from the board of directors of both Noble Group and CIC.

Both parties also agreed to jointly invest in infrastructure assets and supply chain management related to agricultural commodities.

Noble Group mainly supplies iron ore to the Chinese and Indian markets. Noble Group also owns interests in coal and iron ore mines, as well as agricultural assets including crushing plants and sugar refineries.