Interest in Noble Group (N21.SG) remains strong, +2.9% at seven-session high of $1.75 in active trade, on hopes supply chain manager will soon finalise plans for unit Gloucester Coal (GCL.AU), according to Dow Jones.

Interest piqued by Australian Financial Review report saying Gloucester seeking to raise about A$500 million ($604 million) to buy Noble’s coal assets in Australia. While Noble has already disclosed plan for Gloucester to buy its assets, decision yet to be finalised.

If deal goes through, Daiwa, which has Buy call with $2.50 target, says Noble may have about US$439 million ($605 million) more cash which it can use to acquire businesses or develop new projects.

“If this news is true, then Noble is essentially trading short-term profits (forgoing income from Australian assets) for future profits,” says Daiwa.

Immediate resistance at 15-day moving average, last at $1.76.