REG - Coro Energy PLC - Exclusivity - 3.25MW Vietnam Solar Acquisition

Coro EnergyAnnouncement

25/11/2022 12:15

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RNS Number : 6612H  Coro Energy PLC  25 November 2022

25 November 2022

 

Coro Energy Plc

("Coro" or the "Company" and together with its subsidiaries the "Group")

 

Exclusivity on Energised 3.25MW Vietnam Roof top Solar Acquisition

 

Coro Energy PLC, the South East Asian energy company with a natural gas and
clean energy portfolio, announces that it has entered into a period of
exclusivity for three months ("Exclusivity") with the shareholders of KIMY
Trading and Service JSC ("KIMY") in respect of the potential acquisition by
the Group of a 100% interest in a leased rooftop solar portfolio in Vietnam
across four locations close to Saigon with an aggregate generating capacity of
3.25 megawatts currently held by KIMY (the "Portfolio").

 

The Portfolio has been operational for two years and benefits from an existing
power purchase agreement with a remaining eighteen year term, with the power
off-taker being state owned Electricity Vietnam (EVN).

 

In connection with the award of Exclusivity by the vendors to the Group, the
Company and the shareholders of KIMY have set out, subject to, inter alia, due
diligence by the Group and the negotiation and entry of binding documentation,
their agreement as to the proposed consideration payable for any acquisition
of the Portfolio by the Group of a total of c.US$1.7 million (US$548/MW) which
would be paid as follows by the Group:

·    Assumption by Coro of c.US$1.0 million of existing specialist
renewables debt with a Vietnamese bank;

·    US$0.2 million payable on completion of any acquisition in new
ordinary shares in the Company, locked in for 18 months from completion;

·    US$0.25 million in cash on completion; and

·    A further US$0.25 million in cash in six equal monthly instalments
from completion.

Exclusivity will expire on 22 February 2023 and the Company cautions that any
acquisition of the Portfolio remains subject to, inter alia, due diligence by
the Group, the negotiation and entry of binding agreements and the
availability to the Group of funding. Further announcements will be made in
due course.

 

Michael Carrington, Managing Director of Coro Renewables, commented:

 

"I am delighted with this exclusivity period which allows the Company to
commence a deep dive due diligence. 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."

 For further information please contact:

 Coro Energy plc                            Via Vigo Consulting Ltd

 James Parsons, Executive Chairman

 Ewen Ainsworth, Chief Financial Officer

 Cenkos Securities plc (Nominated Adviser)  Tel: 44 (0)20 7397 8900

 Ben Jeynes

 Katy Birkin

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

 Patrick d'Ancona

 Charlie Neish

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

 Harry Ansell

 Katy Mitchell

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

 Jon Fitzpatrick

 Doug Rycroft

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the UK version of the EU
Market Abuse Regulation 596/2014 which is part of UK law by virtue of the
European Union (Withdrawal) Act 2018, as amended and supplemented from time to
time. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

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