Coro Energy PLC Completion of Italian Disposal (7858S)
November 08 2023 - 3:15AM
UK Regulatory
TIDMCORO
RNS Number : 7858S
Coro Energy PLC
08 November 2023
8 November 2023
Coro Energy Plc
("Coro" or the "Company")
Completion of Italian Disposal
Coro Energy PLC, the South East Asian energy company with a
natural gas and clean energy portfolio, announces that the sale of
the Italian portfolio has now been approved by the Italian
regulatory authorities and the sale has been completed.
The total consideration for the sale, as previously announced,
is up to Euro 7.4 million which consists of Euro 5.86 million
upfront consideration (comprising Euro 3.86 million payable on
completion plus Euro 2 million payable as soon as practicable after
completion) and a 10% NPI on future profits capped at Euro 1.5
million. The Company has already received Euro 2.5 million of the
upfront consideration by way of advance payment (as announced on 10
August 2023). The Company agreed that the remaining upfront
consideration due by the purchaser at completion would be offset
against: (i) a Euro 99k debt owed by the Italian portfolio to the
Company's subsidiary, repayment of which was procured by the
purchaser at completion; and (ii) the Italian portfolio's Italian
tax liability of Euro 0.69 million. The Company therefore received
Euro 0.67 million in cash at completion in satisfaction of the
upfront consideration then due and repayment of the Italian
portfolio's debt.
The Company will receive a further Euro 0.14 million in cash
from the purchaser in settlement of the balance of the upfront
consideration as soon as practicable after completion. This payment
represents the Euro 2 million balance of upfront consideration less
the Company's debt of Euro 1.86 million owed to the Italian
portfolio, which was novated to the purchaser on completion.
In addition to the above total consideration the sale and
purchase agreement contains a working capital adjustment, which the
Company estimates will result in a payment by the purchaser to Coro
of Euro 1 million to Euro 2 million. The working capital adjustment
will (at the purchaser's discretion) either be settled in cash
within ten business days of determining the working capital
adjustment, or, as is expected, in instalments via the assignment
to Coro of 70% of the distributable annual profits of the Italian
portfolio until such time as the working capital adjustment is paid
in full. If the working capital adjustment is not paid in full by
31 December 2027, the remaining balance will be immediately payable
irrespective of the distributable profits of the Italian
portfolio.
James Parsons, Chairman, commented:
"With the Italian sale now complete, Coro can now focus its
human and financial resources on South East Asia, with its
underpinning core growth and resulting strong energy demand. Our
immediate attention is on the Duyung PSC farm out process.
I would like to thank our team in Italy for their many years of
service to Coro and wish them well under new ownership."
This announcement contains inside information.
For further information please contact:
Coro Energy plc Via Vigo Consulting Ltd
James Parsons, Executive Chairman
Ewen Ainsworth, Chief Financial Officer
Cavendish Capital Markets Limited Tel: 44 (0) 20 7220 0500
(Nominated Adviser)
Adrian Hadden
Ben Jeynes
WH Ireland (Joint Broker) Tel: 44 (0)20 7220 1670 /
Harry Ansell 44 (0)113 946 618
Katy Mitchell
Hybridan LLP (Joint Broker) Tel: 44 (0)20 3764 2341
Claire Louise Noyce
Gneiss Energy Limited (Financial Advisor) Tel: 44 (0)20 3983 9263
Jon Fitzpatrick
Doug Rycroft
Vigo Consulting (IR/PR Advisor) Tel: 44 (0)20 7390 0230
Patrick d'Ancona
Finlay Thomson
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END
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