REG - Coro Energy PLC - Completion of Italian Disposal

Coro EnergyAnnouncement

08/11/2023 09:30

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RNS Number : 7858S  Coro Energy PLC  08 November 2023

8 November 2023

 

Coro Energy Plc

("Coro" or the "Company")

 

Completion of Italian Disposal

 

Coro Energy PLC, the South East Asian energy company with a natural gas and
clean energy portfolio, announces that the sale of the Italian portfolio has
now been approved by the Italian regulatory authorities and the sale has been
completed.

 

The total consideration for the sale, as previously announced, is up to Euro
7.4 million which consists of Euro 5.86 million upfront consideration
(comprising Euro 3.86 million payable on completion plus Euro 2 million
payable as soon as practicable after completion) and a 10% NPI on future
profits capped at Euro 1.5 million. The Company has already received Euro 2.5
million of the upfront consideration by way of advance payment (as announced
on 10 August 2023). The Company agreed that the remaining upfront
consideration due by the purchaser at completion would be offset against: (i)
a Euro 99k debt owed by the Italian portfolio to the Company's subsidiary,
repayment of which was procured by the purchaser at completion; and (ii) the
Italian portfolio's Italian tax liability of Euro 0.69 million. The Company
therefore received Euro 0.67 million in cash at completion in satisfaction of
the upfront consideration then due and repayment of the Italian portfolio's
debt.

 

The Company will receive a further Euro 0.14 million in cash from the
purchaser in settlement of the balance of the upfront consideration as soon as
practicable after completion. This payment represents the Euro 2 million
balance of upfront consideration less the Company's debt of Euro 1.86 million
owed to the Italian portfolio, which was novated to the purchaser on
completion.

 

In addition to the above total consideration the sale and purchase agreement
contains a working capital adjustment, which the Company estimates will result
in a payment by the purchaser to Coro of Euro 1 million to Euro 2 million. The
working capital adjustment will (at the purchaser's discretion) either be
settled in cash within ten business days of determining the working capital
adjustment, or, as is expected, in instalments via the assignment to Coro of
70% of the distributable annual profits of the Italian portfolio until such
time as the working capital adjustment is paid in full. If the working capital
adjustment is not paid in full by 31 December 2027, the remaining balance will
be immediately payable irrespective of the distributable profits of the
Italian portfolio.

 

James Parsons, Chairman, commented:

 

"With the Italian sale now complete, Coro can now focus its human and
financial resources on South East Asia, with its underpinning core growth and
resulting strong energy demand.  Our immediate attention is on the Duyung PSC
farm out process.

 

I would like to thank our team in Italy for their many years of service to
Coro and wish them well under new ownership."

 

 

This announcement contains inside information.

For further information please contact:

 Coro Energy plc                                        Via Vigo Consulting Ltd

 James Parsons, Executive Chairman

 Ewen Ainsworth, Chief Financial Officer

 Cavendish Capital Markets Limited (Nominated Adviser)  Tel: 44 (0)20 7220 0500

 Adrian Hadden

 Ben Jeynes

 WH Ireland (Joint Broker)                                Tel: 44 (0)20 7220 1670 / 44 (0)113 946 618

 Harry Ansell

 Katy Mitchell

 Hybridan LLP (Joint Broker)                            Tel: 44 (0)20 3764 2341

 Claire Louise Noyce

 Gneiss Energy Limited (Financial Advisor)                Tel: 44 (0)20 3983 9263

 Jon Fitzpatrick

 Doug Rycroft

 Vigo Consulting (IR/PR Advisor)                        Tel: 44 (0)20 7390 0230

 Patrick d'Ancona

 Finlay Thomson

 

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