Manhattan Resources to acquire renewable energy company Athena Energy

Benjamin Cher

Published Wed, Oct 20, 2021 · 01:45 PM

MANHATTAN Resources has entered into a sale and purchase agreement with renewable energy platform Athena Energy in a bid to augment its power business.

The mainboard-listed coal-shipping group will purchase Athena for a consideration of S$4.8 million, with S$4.3 million to be paid in cash and the remaining S$553,700 in new ordinary shares. The shares will be priced at S$0.039 per share, representing a 4.2 per cent discount to the weighted average price of shares traded on Oct 19.

Athena is currently valued at between S$4 million and S$6.1 million.

Manhattan Resources is looking to ride the green energy trend, as disruptions in the global supply chains and Covid-19 have made significant commercial impact on the company. Even in the power business, demand for electricity has dropped due to the pandemic.

Looking to pursue sustainable businesses with stable income as part of its corporate strategy review, the coal-shipping group selected renewable energy as a business moving forward. Athena has checked Manhattan Resource's investment policy and transformation objectives boxes.

Athena currently has 4 megawatt operating and 30 megawatt commitment in rooftop commercial and industrial solar projects in Vietnam. The company also has a pipeline of renewable energy projects in Asia and Australia which will accelerate Manhattan Resources' transformation into a renewable energy company.

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"The acquisition of Athena will strengthen Manhattan Resources' ability to accelerate our growth in the renewable energy business and transform Manhattan Resources into a significant renewable energy player in the Asia and Australia markets. This will undoubtedly enlarge our footprint into the region, grow our low carbon energy business and deliver sustainable value for our stakeholders and communities," said Tang Kin Fei, chairman, Manhattan Resources.

Shares of Manhattan Resources closed at S$0.065 on Wednesday, up S$0.017 or 35.4 per cent.