Coro Energy enters exclusivity over Vietnam solar portfolio
By Josh White
Date: Friday 25 Nov 2022
(Sharecast News) - South-east Asia-focussed Coro Energy has entered into an exclusivity period of three months with the shareholders of KIMY, it announced on Friday, over the potential acquisition of a leased rooftop solar portfolio in Vietnam.
The AIM-traded firm said the portfolio is spread across four locations close to Saigon, with a total generating capacity of 3.25 megawatts.
It said the portfolio had been operational for two years, and benefitted from an existing power purchase agreement with a remaining 18-year term, with the power off-taker being the state-owned Electricity Vietnam (EVN).
In connection with the award of exclusivity by the vendors, the company and the shareholders of KIMY had set out due diligence and the negotiation and entry of binding documentation.
Under that agreement, the proposed consideration payable for any acquisition of the portfolio would be a total of $1.7m, or $548 per megawatt.
That would be paid by the assumption of $1m of existing specialist renewables debt with a Vietnamese bank by Coro, as well as $0.2m on completion in new Coro shares locked-in for 18 months, $0.25m cash on completion, and a further $0.25m cash in six equal monthly instalments afterwards.
The exclusivity period would expire on 22 February, with the firm warning its shareholders that any acquisition remained subject to due diligence, the negotiation and entry of binding agreements, and the availability of funding.
"I am delighted with this exclusivity period which allows the company to commence a deep-dive due diligence," said Coro Renewables managing director Michael Carrington.
"Any acquisition pursuant to the exclusivity period would take our Vietnam portfolio to 6.258 megawatts in total, thereby accelerating our solar deployment in Vietnam."
At 1500 GMT, shares in Coro Energy were down 3.03% at 0.31p.
Reporting by Josh White for Sharecast.com.
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