Zenith Energy Cancels Purchase of Coro Energy's Italian Production Operations

Updated 1 year 1 month ago

On December 3, Coro Energy announced that it has entered into a conditional sale and purchase agreement with Zenith Energy for the disposal of its entire Italian portfolio for a total consideration of GBP 3.9 million. The initial GBP 0.4 million consideration for the disposal is payable by Zenith at closing, will be settled through the issue of 6.7 million new Zenith shares at an effective issue price of 6.0 pence per share. Subject to the Italian portfolio being disposed of achieving average daily production of 100,000 scm over a period of four successive months, a deferred consideration payment of GBP 3.5 million will be made by Zenith to Coro through the issue of new Zenith shares at an effective issue price equal to a 40% premium to the then prevailing Zenith share price at the time of issue. Closing is conditional on the passing of the resolution at the General Meeting and the approval of the Italian Ministry of Economic Development. Zenith and Coro mutually agree to cancel the proposed acquisition in July 2020.

The Italian portfolio requires significant management time and capital expenditure to sustain its production and in-line with our stated strategy, we believe that focusing our resources on the rapidly growing Southeast Asian market will provide greater opportunity to maximize shareholder value. - Coro CEO James Menzies