StockMarketWire.com - Coro Energy said it had entered into an agreement with Zenith Energy to sell its entire Italian portfolio for £3.9m.

The disposal came as the company prioritise the divestment of its non-core Italian operations after stepping up focus on its South East Asian growth strategy.

The initial £0.4m consideration for the disposal, payable by Zenith to the Coro on completion, would be settled through the issue of 6.7m new Zenith shares at an effective issue price of 6.0p per share.

If the Italian portfolio to be sold achieved an average daily production of 100,000 scm over a period of four successive months, a deferred consideration payment of £3.5m would be paid 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.

The disposal would be put to a shareholder vote and needed to be approved by the Italian Ministry of Economic Development.


At 10:06am: [LON:CORO] Coro Energy Plc Ord 0.1p share price was -0.18p at 1.9p



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