Shares of Noble Group fell as much as 9% in early trade today after China Investment Corp agreed to sell a stake in the commodities trader for as much as $405 million.
According to a term sheet seen by The Edge Markets, Best Investment Corp, a subsidiary of the Chinese sovereign wealth fund, will sell 300 million Noble shares at between $1.32 and $1.35 each.
The price range represents a discount of 3.2% to 5.4% to Noble’s closing price of $1.395 yesterday.
The block of shares is equivalent to a 4.5% stake in Noble. JP Morgan is sole book runner for the sale.Shares of Noble traded at $1.295, down 7.2%, at 0206 GMT.
The decline prompted the Singapore Exchange to query the company on the price movement.
Near-term support for the stock is seen at its 200-day moving average of $1.24.
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