An investor consortium led by China-focused private equity firm Hopu will invest alongside Cofco for a minority stake.
Cofco and Noble will establish a joint venture company, Noble Agri, which will become Cofco’s principal international origination platform.
As at the end of last year, Noble Agri had shareholders’ equity of $2.8bn and net debt of $2.5bn.
The deal valued Noble at 1.15 times its 2014 book value.
Cofco chairman Frank Ning said, “Noble Agri’s supply chain management system and origination capabilities complement COFCO’s logistics, processing, and distribution network in China.
“Incremental trade volumes from COFCO as a strategic investor will create significant synergy and value.”
Last month it was reported that Hopu was planning to increase the size of its local fund to $1.6bn.
Copyright © 2014 AltAssets