Mercuria To Acquire U.S. Power, Gas Marketing Business

Noble Group announced that it would sell its U.S. wholesale marketing and trading business Noble Americas Gas and Power Corp. (NAGP) to Mercuria Energy America, Inc.

For "illustrative purposes," the sale price has been estimated at $248 million.

The actual consideration to Noble for the sale shall be:

(i) the net working capital of NAGP calculated as of 11.59 p.m. (New York time) on the day immediately preceding the date of the Closing

(ii) minus $65 million; and

(iii) minus any indebtedness of NAGP calculated as of 11.59 p.m. (New York time) on the day immediately preceding the Closing Date. In this regard, it is anticipated that NAGP will carry out a capitalization of all outstanding intercompany loans prior to Closing

"Purely for illustrative purposes, based on the latest announced unaudited consolidated financial statements of Noble Group for the three months ended 31 March 2017 ('1Q2017') ('Noble Group 1Q2017 Results'), and assuming that the Closing Date was 1 April 2017 and after taking into account the anticipated capitalisation of intercompany loans by NAGP, the Net Working Capital would amount to approximately US$313 million as at 31 March 2017 and accordingly the cash proceeds from the Proposed Disposal would have been approximately US$248 million as of such date ('Total Consideration')," Noble said in a filing

As at 31 March 2017, based on the Noble Group 1Q2017 Results, the book value of NAGP was approximately $337 million and the net tangible asset value of NAGP was approximately $337 million

NAGP trades and provides supply chain management services in gas and power in North America

The sale is expected to close before the end of 2017.