Coro Energy restructures partnership arrangements in Vietnam

Coro Energy announced a strategic move in preparation for its recently revealed 50MW rooftop solar project in Vietnam on Friday.

The AIM-traded firm said it had restructured its partnership arrangements in Vietnam, increasing its equity interest in its Vietnamese venture from 85% to 92.5%.

Invest Gains Viet Nam Company, its local partner, which includes Vinh Phuc Energy, agreed to sell 7.5% of its 15% equity interest in Coro Renewables VN1 joint stock company.

That holding company represents Coro Energy’s investments in Vietnam, including Coro Renewables Vietnam Company, which operates a 3MW rooftop solar project.

Based on the prevailing exchange rate, the board said the transaction’s total consideration was $0.29m.

That comprised an immediate cash payment of $0.1m, with £0.15m of shares in Coro, priced at 0.4p each, would be issued.

Furthermore, a contingent consideration of £0.05m in Coro shares at the same price would be provided to one of the vendors if Coro Energy achieved 100MW of solar generation in Vietnam.

The firm said the initial tranche of shares was expected to be issued once it secured sufficient authorisation from its shareholders, which was likely to happen at the next annual general meeting in June 2024 or an earlier general meeting if needed.

“Following our recent Philippines partner restructuring, we are delighted to announce a similar restructuring in Vietnam,” said Coro’s managing director of renewables, Michael Carrington.

“This transaction, timed as we move towards finalising our previously announced Vietnam funding arrangements with a view to initiating our rollout of the 50MW rooftop solar project, increases Coro’s equity in the Vietnamese business and aligns our partners with Coro’s shareholders.”

At 1409 GMT, shares in Coro Energy were up 4.44% at 0.235p.

Reporting by Josh White for Sharecast.com.