November 30 (Renewables Now) - Singapore-based commodity trader Noble Group (SGX:CGP) on Monday announced an agreement to sell Noble Americas South Bend Ethanol LLC (NASBE), a wholly-owned subsidiary that owns an ethanol plant in the US state of Indiana.
The buyer, family-owned Zeeland Farm Services Inc, will pay USD 12.5 million (EUR 10.6m) plus working capital and inventory value, or potentially a gross total of around USD 17 million. Noble will record a significant loss on the proposed disposal -- about USD 63.3 million at that price -- as the South Bend ethanol business was valued at USD 80.4 million as at September 30.
The divestment is in relation to the sale of Noble's global oil liquids business to Vitol US Holding Co. The latter has agreed that Noble can sell NASBE ahead of the closure of the oil transaction.
Noble will use the proceeds from the ethanol disposal to reduce indebtedness.
(USD 1 = EUR 0.846)