Coro and the shareholders of KIMY Trading and Service JSC have entered into an exclusivity period for three months as Coro explores the potential to scoop up a 100 per cent interest in a leased rooftop solar portfolio across four locations close to Ho Chi Minh City.
The leased rooftop solar portfolio has been in operation for two years and is covered by a power purchase agreement with a remaining duration of eighteen years with the state-owned Electricity of Vietnam as the power off-taker. The value of the proposed acquisition is estimated to reach $1.7 million, or $548 per MW.
This will be paid by the assumption of $1 million of existing specialist renewables debt with a Vietnamese bank by Coro as well as $200,000 payable on completion of any acquisition in new ordinary shares in the company – locked in for 18 months from completion. The transaction is also covered with $250,000 in cash on completion and a further $250,000 in cash in six equal monthly instalments from completion.
The exclusivity will expire on February 22, 2023, and the company warns its shareholders that any acquisition remains subject to due diligence by the group, the negotiation and entry of binding agreements, and the availability of funding.
Commenting on this deal, Michael Carrington, managing director of Coro Renewables said, “I am delighted with this exclusivity period, which allows the company to commence deep-dive due diligence. Any acquisition pursuant to the exclusivity period would take our Vietnam portfolio to 6.26MW in total, thereby accelerating our solar deployment in the nation.”
Throughout the past two decades, Vietnam’s GDP has grown in excess of 5 per cent per annum fuelling significant power demand growth. To meet this demand, the country is now planning 15-20 per cent (approximately 35GW) of additional renewables capacity by 2030. At the same time, Vietnam has pledged to achieve net-zero carbon emissions by 2050.
The latest move by Coro contributes to facilitating the country’s transition to a low-carbon economy.
By Thanh Van
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