Commodity trader Noble Group on Monday said it will announce the consideration paid by Mercuria Energy America Inc for its unit after adjustments for closing date net working capital.
Noble Group in July said it will sell its North American Gas & Power (NAGP) business to rival Mercuria. On October 2, Noble's unit Noble Americas Corp announced the completion of sale to Mercuria, which paid an amount of US$102 million.
In addition, Mercuria also deposited with an escrow agent US$83 million, which Noble said it expects to receive in the coming weeks.
In response to queries from the SGX, Noble explained that the US$102 million was derived from subtracting US$65 million from the estimated closing date net working capital of about US$249 million.
The difference between the closing amount and the total consideration is due to a decrease in NAGP's working capital between March 31, 2017, June 30, 2017 and September 30, 2017. Also the total consideration did not taking into account the funds placed into escrow, it said in a statement to the exchange.
"The conversion of working capital into cash refers to the fact that trade accounts receivable fell as customer invoices were settled for cash. Therefore working capital decreased and as a result the amount paid by the buyer also decreased," Noble Group said in a regulatory filing.
Shares in Noble Group rose 1.3 percent to S$0.40 on the Singapore Exchange. The stock has slumped 76 percent so far this year.
