22nd Feb 2021 18:02
Coro Energy PLC - South East Asian energy company - Says it has entered into a conditional agreement to acquire Global Energy Partnership Ltd. Says purchase of GEPL, an originator and developer of renewable energy projects in South East Asia, is next step in Coro's objective of building a regionally-focused, low-carbon transitional energy company. Acquisition consideration to be settled through the issue of 142.5 million new shares.
Coro also proposes placing, by way of an accelerated bookbuild, to raise gross proceeds of a minimum of GBP3 million at a placing price of at 0.4 pence per share to new and existing investors. Proceeds will be used to provide sufficient financial resources to fund the enlarged group and its asset base through to second quarter of 2022, whilst also seeking to restructure the company's existing debt and conclude a divestment of the company's non-core Italian assets during 2021.
In addition, GEPL co-founder Mark Hood will join the Coro board as chief executive officer on completion of the acquisition.
Chair James Parsons says: "We are delighted to announce the proposed acquisition of GEPL as the next step in our strategic evolution towards becoming a regionally focused, low carbon energy company. The combination of the acquisition and the proposed placing will provide the Company with an enviable renewable energy project pipeline and capital to deploy across both renewables and our underpinning Indonesian gas asset.
"GEPL's project pipeline and its executive team perfectly complement both Coro's South East Asian gas assets and our ion Ventures interest announced last year and I believe that the combined businesses will deliver enhanced value for all stakeholders. I look forward to welcoming Mark Hood to the board."
Current stock price: 0.525p
Year-to-date: up 21%
By Arvind Bhunjun; [email protected]
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