REG - Coro Energy PLC - Italian Disposal Update

Coro EnergyAnnouncement

10/08/2023 07:00

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RNS Number : 8590I  Coro Energy PLC  10 August 2023

10 August 2023

Coro Energy Plc

("Coro" or the "Company")

 

Italian Disposal Update

 

Coro Energy Plc, the Southeast Asian energy company with a natural gas and
clean energy portfolio is pleased to announce that the approval of the sale of
the Italian portfolio by the Italian regulatory authorities is progressing
well and that, to enable continued acceleration of its renewables portfolio,
the Company has now signed an Addendum to the Sale and Purchase Agreement
("SPA") as previously announced on the 27 March 2023.

 

Highlights:

 

-     Zodiac Energy plc ("Zodiac") has agreed to make a further cash
advance of EUR 0.7m within 10 business days (the "Additional Advance") which
will bring the total advanced to Coro to date to EUR 2.5m. The Additional
Advance will enable the company to proceed to procure a met mast in the
Philippines to support 12 months of wind data to build the technical and
banking case for the 100MW utility scale onshore wind project alongside
funding Duyung FEED spend and general working capital.

 

-      Coro has agreed to reduce the sum due at completion by the
Additional Advance and an additional EUR 0.14m.

 

-     Although not expected to be required, the longstop date under the
SPA has been extended to the 31 December 2023, to allow additional time for
regulatory approval by the Italian authorities.

 

-     At completion Coro was previously required to settle the local Italian
subsidiary intercompany loan (estimated at EUR 1.86m) which will now be
assigned directly to Zodiac.

 

As a result, and following receipt of the Euro 0.7m Additional Advance, the
final completion payment will be some Euro 1.36m (reduced from the previously
announced Euro 2.2m) plus the standard working capital adjustment which is
expected to be positive and significant to Coro.

Further to the above, Coro is also due a deferred payment of EUR 2.0m which is
to be offset with the assignment of the intercompany loan to Zodiac leaving a
balance of EUR 0.14m due as soon as practicable following completion. Any
positive working capital adjustment will be settled by Zodiac in cash within
ten business days or, as is expected and agreed in the SPA, from the
assignment to Coro of 70% of Apennine distributable annual profits until such
time as the balance is paid in full. If the balance is not paid in full by 31
December 2027, the remaining balance will be immediately due to Coro by Zodiac
irrespective of the distributable profits of Apennine.

The total potential consideration for the transaction is now therefore EUR
7.4m from the previous EUR 7.5m.

All other terms of the SPA disclosed in the Company's announcement of 27 March
2023 remain unchanged.

 

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

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

 Adrian Hadden

 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

 

 

 

 

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