29th Mar 2023 11:36
(Alliance News) - Coro Energy PLC on Wednesday said it has entered into a revised heads of terms with KIMY Trading & Service JSC, following due diligence regarding its potential acquisition of a 3.25 megawatt rooftop solar portfolio in Vietnam.
Back in late November, the south east Asia-focused energy company with a natural gas and clean energy portfolio said it had entered into a period of exclusivity on a 100% interest in a leased portfolio held by KIMY across four locations near Vietnam's largest city Ho Chi Minh City, with an aggregate generating capacity of 3.25MW.
The total acquisition price remains around USD1.7 million, or USD548 per megawatt, Coro Energy said on Wednesday, while the signed revised heads of terms has extended the period of exclusivity.
Upon completion, Coro Energy will assume USD950,000 of existing specialist renewables debt with a Vietnamese bank via acquisition of KIMY, alongside paying USD130,000 in cash, of which USD30,000 is to secure certain required local fire safety certifications.
New Coro shares worth around USD250,000 also will be payable to KIMY, locked in for 18 months from completion, alongside a further USD80,000 in cash and USD80,000 in new shares, payable after two months on demonstration that the local certification is in place with no curtailment.
Lastly, a further USD250,000 in cash via six equal monthly instalments will be payable from completion.
Coro Energy said legal work on the final transaction documents is now underway, having renegotiated some aspects of the heads of terms as part of its due diligence, in order to "reflect some works that will be needed post completion".
It added the portfolio has been operational for two years and benefits from an existing power purchase agreement with a remaining 18-year term, while the power off-taker being the state-owned Electricity Vietnam.
Shares in Coro Energy were down 7.8% to 0.23 pence each in London on Wednesday morning.
By Greg Rosenvinge, Alliance News reporter
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