Coro sells stake in ion Ventures for £1.25mn

Southeast Asia-focused Coro Energy has reached an agreement to divest its 18.76% stake in ion Ventures Holdings to SLT1, a privately owned entity based in the US, for £1.25mn ($1.59mn), it announced on August 24.

The deal involves an immediate payment of £1mn, with the remaining £250,000 scheduled for payment by March 31, 2024. Coro initially acquired the shareholding in ion for £500,000 in 2020.

ion incurred a loss of $404,000 in 2022, with Coro's share of the loss amounting to $82,000. The net book value of the assets being sold, as reported in the 2022 accounts, was $259,000, representing the original consideration minus the share of losses since the acquisition of the shareholding.

The proceeds from the sale will be allocated towards advancing Coro's renewable portfolio in Southeast Asia, specifically focusing on its projects in Duyung, and will also contribute to working capital needs.

“This investment was Coro's first step into the clean energy space and was a useful bridge to establishing our own operated renewables portfolio. With operated positions in both the Philippines and Vietnam, this minority, non-operated investment is now no longer part of our strategy and we are pleased to exit at a multiple of our entry cost,” Michael Carrington, managing director of Coro Renewables, said.

Earlier in the year, Coro divested its Italian natural gas assets to UK-based Zodiac Energy for €7.5mn ($8mn). The company has said that its primary focus remains on southeast Asia, where it has an interest in the Conrad-operated Duyung gas field off Indonesia.