Noble's $127.92m vessel disposal deal fails

The buyers failed to obtain the approval of their executive board.

Noble Group Limited's (NGL) proposed disposal of its four vessels for $95m fell through after the buyers failed to obtain their board's approval, making the agreements null and void.

According to an announcement, the agreement required both NGL and the buyers to obtain the approval of their respective boards before 1 February 2018. NGL got the approval of the shareholders during a special general meeting on 25 January 2018.

Singapore Business Review previously reported that NGL has signed a memoranda of agreement (MOA) with four companies to sell four Kamsarmax dry bulk carrier vessels for $127.92m (US$95m).

Had the disposal been completed, the net proceeds would have amounted to around US$30m.

NGL mentioned that the market value of Kamsarmax dry bulk carrier vessels has also increased from US$92.25m to US$95m.

"Noble Group wishes to update that the Vessels are, in the current market, profit generating and cash flow positive," NGL said.

Following the failure of the deal, NGL said the vessels remain available for sale and that it has started talks with other interested parties.