Asian trader Noble Group sells US business for $1.05 bln

Beleaguered Asian commodities trader Noble Group said Monday it has agreed to sell its North American energy business to US power generator Calpine Corp for a total $1.05 billion.

The Singapore-listed firm said the sale brings it closer to completing an initiative to raise $2.0 billion in capital as it strengthens its finances to turn the company around.

The Hong Kong-based company, which has strong links to China, is trying to restore investor confidence after a plunge in commodities prices last year hammered shares and led to a credit ratings downgrade.

It had also faced allegations by little-known Iceberg Research of irregular accounting practices.

In a statement to the Singapore Exchange on Monday, Noble Group said it sold its Noble Americas Energy Solutions (NAES) subsidiary to Calpine for $800 million, plus $248 million as repayment for the US unit's working capital.

"The sale of NAES substantially completes the $2.0 billion capital-raising initiative that we announced in June," the firm's co-chief executives Jeff Frase and Will Randall said in a statement.

"With this divestiture, Noble will continue to reduce debt while also funding growth opportunities in our high-return businesses."

Noble's shares surged over 9.0 percent after the sale was announced before closing at 19.8 Singapore cents, up 3.13 percent from Friday.

CMC Markets Singapore analyst Margaret Yang said the sale "largely alleviated the concerns of a liquidity squeeze that the company has faced during (the) commodities slump, and may aid in Noble Group's turnaround".