Asian trader Noble Group sells US business for $1.05b

Beleaguered Asian commodities trader Noble Group said Monday it has agreed to sell its North American energy business to US power generator Calpine Corp for a total $1.05 billion.

The Singapore-listed firm said the sale brings it closer to completing an initiative to raise $2.0 billion in capital as it strengthens its finances to turn the company around.

The Hong Kong-based company, which has strong links to China, is trying to restore investor confidence after a plunge in commodities prices last year hammered shares and led to a credit ratings downgrade.

It had also faced allegations by little-known Iceberg Research of irregular accounting practices.

In a statement to the Singapore Exchange on Monday, Noble Group said it sold its Noble Americas Energy Solutions (NAES) subsidiary to Calpine for $800 million, plus $248 million as repayment for the US unit's working capital.

"The sale of NAES substantially completes the $2.0 billion capital-raising initiative that we announced in June," the firm's co-chief executives Jeff Frase and Will Randall said in a statement.