Coro Energy offloads stake in Ion Ventures

Coro Energy announced its decision to divest its 18.76% stake in Ion Ventures Holdings on Thursday, to US-based private entity SLT1.

The AIM-traded firm said the agreement involved a cash transaction of £1.25m, with SLT1 to make an upfront payment of £1m, and the balance of £0.25m slated for payment by 31 March next year.

Coro said its investment history with Ion Ventures began in 2020, when it acquired the shareholding for £0.5m.

However, in 2022, Ion reported a financial loss of $0.4m, with Coro Energy's share amounting to a loss of $82k.

According to its 2022 financial statements, the net book value of the assets being sold stood at $0.26m - a figure derived after adjusting the original investment amount with the share of losses post-acquisition.

Coro said its decision to sell its share was in line with its broader strategic direction, adding that the proceeds were earmarked for bolstering its renewable energy portfolio in south east Asia and Duyung.

Additionally, a portion of the funds would be channelled towards the company's working capital, ensuring smooth operations for the foreseeable future.

“Ion Ventures has successfully delivered its strategy and we have been delighted to have been a supportive investor,” said managing director Michael Carrington.

“This investment was Coro's first step into the clean energy space and was a useful bridge to establishing our own operated renewables portfolio.

“With operated positions in both the Philippines and Vietnam, this minority, non-operated investment is now no longer part of our strategy and we are pleased to exit at a multiple of our entry cost.”

At 1417 BST, shares in Coro Energy were up 0.22% at 0.23p.

Reporting by Josh White for Sharecast.com.