(Alliance News) - Coro Energy PLC on Friday said it has restructured its arrangements with its partners in Vietnam, increasing its equity interest in its Vietnamese venture to 93% from 85%.
On Thursday, the South East Asian energy company's partner Invest Gains Viet Nam Co Ltd agreed to sell to Coro 7.5% of its 15% equity interest in Coro Renewables VN1 Joint Stock Co, which is the Vietnamese holding company for Coro's investments in Vietnam.
This includes Coro Renewables Vietnam Co Ltd, which holds the operational three megawatt rooftop solar project.
Coro said it will pay up to USD290,000 for this transaction based on the current exchange rate. This comprises an immediate cash payment of USD100,000, plus a further GBP150,000 in company shares priced at 0.4 pence each.
Shares in Coro were up 2.7% to 0.23 pence each in London on Friday late morning.
This is alongside a further contingent consideration of GBP50,000 in shares at the same price if Coro achieves 100 megawatts of solar generation in Vietnam.
Coro said the first tranche of shares will be issued the company has secured shareholder approval at its next annual general meeting, likely to be in June, or at a general meeting if earlier.
"Following our recent Philippines partner restructuring, we are delighted to announce a similar restructuring 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," Coro Managing Director for Renewables Michael Carrington.
By Greg Rosenvinge, Alliance News senior reporter
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