SINGAPORE (Reuters) - Noble Group shares extended gains on Thursday, jumping as much as 5.2 per cent, after China's largest grain trader COFCO Corp agreed to pay US$1.5 billion for a majority stake in the Singapore-listed commodities firm's agribusiness.
The company's shares hit an intra-day high of $1.32, the highest since October 2012. The benchmark Straits Times Index rose 0.8 per cent, while MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1 per cent.
DBS Vickers said the deal is positive for Noble and upgraded the stock to "buy" and raised its target price to $1.53 from $1.09.
"This is consistent with Noble's asset-light strategy, enabling capital recycling to enhance shareholders' returns and allowing Noble to channel focus to its more profitable Energy and Metals, Minerals and Ores segments," DBS said.
Shares of LionGold Corp plunged as much as 16.9 per cent after the company said two of its executives were being investigated by Singapore's Commercial Affairs Department.
Share prices of LionGold, Blumont Group and Asiasons crashed last October, wiping out around $8 billion in market value in just two days after huge run-ups.