Embattled commodities trader Noble Group said Wednesday it has reached an agreement to sell its 49 percent stake in Noble Agri to Chinese state-owned giant COFCO International for $750 million.
The sale comes a month after ratings agencies Moody's and Standard and Poor's said they were reviewing the company's investment grade rating due to liquidity concerns.
Noble chief executive Yusuf Alireza said in November that the company was seeking to raise $500 million through asset sale and strategic transactions, so the cash deal with Cofco ensures that Noble has "comfortably exceeded its commitment", the company said in a press release.
The entire proceeds of the disposal will be used to pay down debt, the company added. Noble shares surged as much as 5.7 percent Wednesday on news of the sale.
"After completion of this transaction, Noble Group's financial metrics will be well in excess of those required of an investment grade credit," the company said