Coro Energy hikes stake in Vietnamese solar venture

UK’s Coro Energy Plc (LON:CORO) on Friday announced that it has increased its stake in its Vietnamese venture to 92.5% from 85% in preparation for the launch of a 50-MW rooftop solar project in Vietnam.

The Southeast Asia-focused energy investor has agreed to purchase 7.5% of the shares held by its partner Invest Gains Viet Nam Company Limited in Coro Renewables VN1 Joint Stock Company.

Coro Renewables VN1 is the Vietnamese holding company for Coro’s investments in Vietnam.

The consideration for the transaction is up to approximately USD 290,000 (EUR 265,840), payable in a combination of cash and Coro's shares. Coro will make an immediate cash payment of USD 100,000, a further GBP 150,000 (USD 188,436/EUR 172,750) in its shares priced at GBP 0.004 per share, and a further contingent consideration of GBP 50,000 in shares at that same price if Coro reaches 100 MW of solar generation in Vietnam.

The ownership restructuring follows Coro's recently announced agreement to install 50 MW of rooftop solar power systems for a corporate customer in Vietnam.

“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,” said Michael Carrington, Managing Director Renewables.

(USD 1.0 = EUR 0.917)

(GBP 1.0 = USD 1.256/EUR 1.152)

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