Coro Energy acquires rooftop solar assets in Vietnam

LONDON, UK: Coro Energy PLC, a prominent South East Asian energy company specializing in natural gas and clean energy, has announced the signing of an agreement to acquire a rooftop solar portfolio from the shareholders of KIMY Trading and Service JSC (“KIMY”).

The acquisition was initially announced on November 25, 2022, and March 29, 2023.

Under the agreement, Coro Energy will obtain a 100% interest in a leased rooftop solar portfolio located near Saigon, Vietnam. The portfolio, held by KIMY, consists of four locations and has a combined generating capacity of 2.39 megawatts (MW). The operational portfolio has been generating power for the past two years and benefits from a power purchase agreement with a remaining term of eighteen years. The agreement is in place with state-owned Electricity Vietnam (“EVN”).

Following thorough due diligence and site visits, one of the rooftop systems originally included in the acquisition has been excluded from the deal, resulting in a revised total generating capacity of 2.39MW. Accordingly, the acquisition price has been adjusted to US$1.3 million (US$543/MW).

The breakdown of the acquisition price is as follows:

  • At completion:
    • Coro Energy assumes US$600,000 of existing specialist renewables debt from a Vietnamese bank.
    • US$111,912 will be paid in cash, with US$30,000 specifically designated for securing required firefighting certificates.
    • US$285,000 will be paid through the issuance of new ordinary shares in the Company at the mid-market price six months after completion, subject to an 18-month lock-in period.
  • An additional US$300,000 in cash will be paid in six equal monthly installments starting from completion.

The cash consideration is expected to be funded by the existing cash balance of Coro Energy’s subsidiary in Vietnam and future cash flows from the company’s existing 3-megawatt project, coupled with revenues from the acquisition project. As of April 2023, the 3-megawatt project has generated cash receipts totaling US$115,000.

In the year ending December 31, 2022, KIMY incurred a loss of approximately US$195,000, which includes various costs of sales and administration expenditures that will not be assumed by Coro Energy after the acquisition. As a result, the acquisition is anticipated to have a positive cash flow and be profitable from completion.

The completion of the acquisition of the rooftop solar portfolio is expected to take place in the fourth quarter of 2023. Further updates will be provided as appropriate throughout the process.

Coro Energy signs power purchase agreement for its rooftop solar project

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