Coro Energy PLC (AIM:CORO) has said it is acquiring a rooftop solar portfolio in Vietnam for US$1.3 million - a deal that will be profitable and cash flow positive.
Originally, the company had sought to acquire a 3.25 MW segment of KIMY Trading Services' leased solar portfolio spread across four locations in Saigon.
However, after extensive due diligence and site visits, the acquisition has been scaled down to a 2.39 MW portfolio, with the price adjusted accordingly.
On completion, Coro Energy will assume a $600,000 debt, pay $111,912 cash (including $30,000 for firefighting certificates), issue $285,000 in new shares locked for 18 months, and pay a further $300,000 in instalments.
Operational for two years, the portfolio has an 18-year power purchase agreement with state-owned Electricity Vietnam.
The deal is expected to complete in the fourth quarter.