Coro Energy revises deal for potential Vietnam solar purchase
By Josh White
Date: Wednesday 29 Mar 2023
(Sharecast News) - South east Asia-focussed Coro Energy has entered into a revised heads of terms with the shareholders of KIMY Trading and Service, it announced on Wednesday, for the potential acquisition of a 3.25 megawatt leased rooftop solar portfolio in Vietnam.
The AIM-traded company said the revised deal was made following due diligence and site visits.
It said the portfolio consists of four locations near Saigon, with a generating capacity of 3.25 megawatts.
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).
Coro said the revised heads of terms extended its period of exclusivity, and reflected some works that would be needed post-completion.
The total acquisition price remained at $1.7m, albeit with revised consideration scheduling.
It said the acquisition would involve the assumption of $0.95m of existing specialist renewables debt with a Vietnamese bank, and $0.13m cash payable, of which $0.03m was ring-fenced to secure certain required local fire safety certifications.
The firm said $0.25m would be payable in new shares in Coro, locked in for 18 months from completion.
Additionally, a further $0.08m cash and $0.08m of new shares in the company would be payable after two months on the demonstration that the local certification was in place, with no curtailment.
A further $0.25m in cash would be payable in six equal monthly instalments from completion.
"Further protections in respect of the outstanding documentation will be incorporated into the final transaction documents albeit it is understood that achieving the documentation is purely an administrative process," the board said in its statement.
At 1343 BST, shares in Coro Energy were down 9.8% at 0.23p.
Reporting by Josh White for Sharecast.com.
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