Manhattan Resources to sell 44 vessels for 170b rupiah

MANHATTAN Resources is selling 22 tugs and 22 barges to PT Karunia Samudera Lines of Indonesia for 170.6 billion rupiah (S$18 million) in cash, according to an announcement on Tuesday after the market closed.

Manhattan, a coal and oil and gas contractor, said that the vessels incurred a net loss of S$2 million in the half-year ended June 30, 2016. Manhattan will use the net proceeds from the sale of the loss-making assets for general purposes and working capital as it shifts towards power plant and property businesses in China.

The purchase consideration matches an independent valuation of the vessels, and represents a premium of about 60 per cent to the vessels' S$10.7 million book value as at June 30, 2016. If the sale is completed, Manhattan expects to recognise a S$7.3 million gain on disposal.