Coro Energy PLC, the South East Asian energy company with a natural gas and clean energy portfolio, announces that it has signed the acquisition of a rooftop solar portfolio from the shareholders of KIMY Trading and Service JSC (KIMY), as previously announced on 25 November 2022 and 29 March 2023.
As initially announced on 25 November 2022, the Company entered into a period of exclusivity on 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 (MW) 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). Following comprehensive due diligence and site visits, one of the Portfolio’s rooftop systems has been removed from the acquisition, such that the Portfolio now totals only 2.39MW. The acquisition price has also been adjusted accordingly.
The total acquisition price is therefore US$1.3 million (US$543/MW) split as follows:
At completion:
- The assumption by Coro of US$600,000 of existing specialist renewables debt with a Vietnamese bank;
- US$111,912 payable in cash, of which US$30,000 is ring-fenced to secure certainly required firefighting certificates;
- US$285,000 payable in new ordinary shares in the Company to be issued at the mid-market price six months following completion and locked in for 18 months from completion;
A further US$300,000 in cash in six equal monthly instalments from completion.
The cash consideration is anticipated to be settled from the existing cash balance of the Company’s Vietnam subsidiary and future cash flows from the existing 3-megawatt project accompanied by the acquisition project revenues. By the end of April 2023, cash receipts from the 3-megawatt project total US$115,000.
KIMY incurred a loss of approximately US$195,000 in the year to 31 December 2022 which includes various costs of sales and administration expenditures which will not be inherited by Coro post-acquisition. Consequently, the acquisition is expected to be both cash positive and profitable from completion.
Completion of the acquisition of the Portfolio is expected to occur in Q4 2023 and further announcements will be made in due course, as appropriate.
