Continue reading this on our app for a better experience

Open in App
Floating Button
Home News Company in the news

Manhattan Resources' subsidiary looks to sell two land parcels at 271.3 billion rupiah

Amala Balakrishner
Amala Balakrishner • 2 min read
Manhattan Resources' subsidiary looks to sell two land parcels at 271.3 billion rupiah
Shares in Manhattan Resources closed at 6 cents, with no shares traded on Dec 9.
Font Resizer
Share to Whatsapp
Share to Facebook
Share to LinkedIn
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

PT Kariangau Power – an indirect subsidiary of mainboard-listed coal shipper Manhattan Resources – is selling two land parcels in Kariangau Village, Balikpapan in East Kalimantan for close to RP 271.3 billion ($25.7 million) in an interested person transaction.

Manhattan Resources holds 86.1% in PT Kariangau. The power plant operator, plans to sell the parcels – which have a combined area of over 271,270 sq metres – to PT Dermaga Perkasapratama, a company which is 87.4% owned by Bayan Resources.

The latter’s shareholders include Low Tuck Kwong – the controlling shareholder of Manhattan Resources – and his son Low Yi Ngo – chief executive and managing director of Manhattan Resources.

The sale is expected to generate gains of close to $19.5 million. The proceeds will be used for capital expenditure, development costs and working capital to fund the company’s projects under its renewable energy business, the group notes in a Dec 9 regulatory filing.

The land had previously been earmarked for the expansion of PT Kariangau Power’s power generation business.

However, the group considers the proposed deal an “opportunity” to realise its property investment since the land parcels are currently vacant and not generating any income. It adds that rental income will likely remain restricted or limited in the foreseeable future, due to the pandemic-related restrictions.

See also: Sembcorp issues $350 mil of guaranteed notes due 2036 at 3.65%

The net book value of the land stood at $6.51 million on Dec 31 2020. The group notes that earnings per share would have jumped from 0.35 cents to 1.05 cents, if the proposed disposal of the land parcels had been effected on Jan 1 2020 (or the beginning of the group’s most recently completed financial year).

Meanwhile, the company’s pro forma net tangible assets (NTA) would have edged up to 3.37 cents, from 2.81 cents, had the sale been completed on Dec 31 2020.

The value of the sale represents 30.61% of the group’s unaudited NTA, while the net asset value of the land makes up around 27.5% of the group’s net asset value.

See also: Yangzijiang Shipbuilding subsidiaries have ‘reasonably good prospect of success’ in arbitration claims

The transaction is subject to the approval of independent shareholders at an extraordinary general meeting.

Manhattan Resources is finalising the appointment of an independent financial adviser. Its audit committee will decide whether the deal is on normal commercial terms and not prejudicial to the interests of the company and its minority shareholders.

Shares in Manhattan Resources closed at 6 cents, with no shares traded on Dec 9.

Cover image of Kawasan Industri Kariangau Zone, Balikpapan: Manhattan Resources

Highlights

Re test Testing QA Spotlight
1000th issue

Re test Testing QA Spotlight

×
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
© 2024 The Edge Publishing Pte Ltd. All rights reserved.