Coro Energy PLC (AIM:CORO) announced Zodiac Energy has agreed to make an advance payment for its Italian portfolio within days.
This has been done to allow Coro to buy a mast in the Philippines to supply a years’ worth of wind data as the company builds a technical and banking case for a planned 100MW farm.
Coro initially agreed to sell its Italian portfolio to Zodiac in March in a bid to shift focus to southeast Asia, with the potential total consideration of the deal sitting at €7.4 million.
Under the addendum in the contract, Zodiac will make a cash advance of €0.7 million within 10 days, bringing the total already paid for the Italian assets to €2.5 million.
This will reduce the sum paid by Zodiac at the completion of the deal to €1.4 million, Coro said in a statement, with a further €0.2 million also due.
A longstop date for the agreement has been set at 31 December of this year meanwhile, though this is “not expected to be required”, Coro continued, as the pair await the green light from Italian authorities.
“Approval of the sale […] by the Italian regulatory authorities is progressing well,” the AIM-listed company added.