Noble Group (N21.SG) unable to build on initial gains, flat at $1.68 vs +0.6% at $1.69 earlier, with decision to sell Australian mine Middlemount to Gloucester Coal (GCL.AU) for A$437.5 million ($539 million) hardly rubbing off on shares, says Dow Jones.

Lack of investor participation not surprising as players likely holding back pending supply chain manager’s 2Q10 results due Aug 12. Still, Middlemount divestment deemed positive. 

 

“Good move. I like it,” says a Singapore-based analyst at Wall Street bank; notes move in line with Noble’s strategy to lighten its assets, while giving it “more firepower” for M&As.

 

Divestment comes just days after Noble proposed issuing US$750 million ($1.1 billion) worth of senior notes, secured US$1.55 billion syndicated loan. Support at last week’s low of $1.64.