Noble's altered restructuring deal still not enough for shareholders: Goldilocks

Noble raised their current shareholders' stake from 10% to 15% in the post-restructuring company.

Noble Group's top shareholder Goldilocks Investment Company Limited (Goldilocks) said that "it is heartened" by the company's improved proposed stake from 10% to 15% for existing shareholders in the restructured company, but the offer still does not reflect the true value for them.

Goldilocks noted that whilst the terms of the latest revised deal are not yet fully fleshed out, this is a 50% uplift from where the negotiations started. "The fund believes that shareholder value was depressed in the initial proposal made by Noble management and creditors. The previous proposal pegged shareholders stake in the New Noble post-restructuring at 10%, compared to a 20% stake for Noble management," it added.

It also said that the revised proposal is a step in the right direction. However, the offer still does not reflect the true value attributable to shareholders. "The fund intends to work on delivering a redesigned, reoriented and holistic plan that will enhance value for all stakeholders, including shareholders of Noble.

"Recent efforts by Goldilocks to obtain a better outcome for all shareholders of Noble have resulted in the fund becoming the point of the spear – holding firm onto its belief that shareholders deserve better," it added. "It has also raised awareness that a better restructuring deal is always achievable."

A spokesperson for Goldilocks said, “The fund adopts a constructive approach in its investments. We work closely and proactively with shareholders and other stakeholders to encourage boards and management teams in executing turnaround strategies, and ultimately unlocking shareholder value.”

The fund said it will continue to work to achieve an even better result for all shareholders.