WATCH-LISTED renewable energy infrastructure company Metis Energy on Friday (Sep 16) announced that its wholly-owned subsidiary Athena Energy Holdings will spend A$12 million (S$11.5 million) to acquire a solar farm utility-scale project called Project Sunshine, which is in the final stages of development.

The A$12 million consideration includes the settlement of outstanding debt of the target company on completion, but it noted that Project Sunshine will provide Metis with another “key milestone” in driving further growth in Australia following the acquisition.

This comes as the target company secured a 30-year land lease and strong support from local government, industry and the surrounding community, Metis said in a bourse filing.

The company’s group general manager Alan Yau said Metis is investing into a “significantly derisked” ‘ready-to-construct’ utility-scale solar project, which is set to operate with an installed capacity of 111 megawatts-peak (MWp) DC, or 94 megawatts AC.

“The sizeable project will set the foundation for Metis growth in Australia. It will provide us the platform and catalyst to expand our renewable energy business in Australia. 

“Leveraging on the attractive electricity market environment and positive trend in Australia, Metis will enhance its valuation by scaling up our portfolio in Australia,” he added.

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Moving forward, Yau said he will devote necessary resources and management attention to ensure the successful closing and eventual commissioning of Project Sunshine.

Metis said the Project Sunshine acquisition is expected to complete by end-December and will be funded through internal resources.

It also declared that the acquisition is in Metis’ ordinary course of business, and is not expected to have a material impact on the earnings per share and net asset value per share of the company for the financial year ending Dec 31.

Metis, meanwhile, divulged that it is also actively engaging in another discussion to buy a 100mW utility-scale wind project in Vietnam. Another announcement will be made when further developments materialise, it said.

Metis is formerly known as Manhattan Resources. Its shares closed 16.1 per cent or S$0.01 higher at S$0.072, before the announcement.