Commodities trader Noble Group has announced it is selling its US-based ethanol producer Noble Americas South Bend Ethanol (NASBE) for $12.5 million (€10.5 million).
According to a statement from Noble, the company has entered into an equity purchase agreement with Zeeland Farm Services for the proposed sale of “all of the issued and outstanding capital stock” of NASBE.
When working capital and NASBE inventory value are included, combined with the ethanol producer’s zero-debt as of 30 September 2017, the total cash proceeds from the transaction will equal approximately $17 million.
NASBE owns and operates an ethanol production facility in South Bend, Indiana. It is part of Noble’s Energy segment.
The sale comes as part of broader plans by Noble to sell its global oils liquids business. It is expected that the proceeds from the sale will go towards relieving some of the commodities trader’s debts.
“It is expected that the NASBE Net Proceeds will be made available to reduce Noble Group’s indebtedness,” explains the statement from Noble.