Coro Energy buys 2.39-MW rooftop solar portfolio in Vietnam

UK-based and southeast Asia-focused Coro Energy Plc (LON:CORO) announced that it has signed a USD-1.3-million (EUR 1.18m) definitive agreement to acquire a leased rooftop solar portfolio in Vietnam with a total generating capacity of 2.39 MW.

The deal, which encompasses three locations close to Saigon, was agreed with the shareholders of the owner of the assets, namely KIMY Trading and Service JSC (KIMY), a statement said on Thursday.

The portfolio to be acquired has been operational for two years and has an existing power purchase agreement (PPA) with state-owned Electricity Vietnam (EVN). The contract has a remaining eighteen-year term.

The formal signing of the agreement comes after Coro entered into exclusive talks on a potential transaction in November. The UK energy company initially sought to acquire four sites with a total generating capacity of 3.25 MW for up to USD 1.7 million. After due diligence and site visits, one of the targeted rooftop systems was removed from the transaction.

Coro expects to wrap up the deal in the fourth quarter of 2023.

The transaction consideration includes USD 111,912 in cash and USD 285,000 in new Coro ordinary shares payable at close. The buyer will also assume USD 600,000 of existing specialist renewables debt with a Vietnamese bank. Additionally, some USD 300,000 in cash will be paid in six equal monthly instalments from completion.

(USD 1 = EUR 0.913)

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