Coro Energy terminates deal to sell Italy portfolio
South east Asia-focussed upstream oil and gas company Coro Energy announced the termination of the sale and purchase agreement entered into with Zenith Energy in December on Friday, over the proposed disposal of its entire Italian portfolio.
The AIM-traded firm said completion of the disposal was conditional on the receipt of Italian regulatory approvals prior to a long stop date of 31 July, which it said on Friday would not be achieved.
It said the agreement allowed for a possible extension of the long stop date to 31 October on written request by Zenith, and supported by reasonable documentation or other reasonable evidence demonstrating that Zenith had promptly filed all necessary applications and related supporting documents, and taken all other actions necessary to obtain the approvals.
“Both parties have agreed that the likelihood of successfully completing the Disposal prior to 31 October is low, and therefore the sale and purchase agreement has been terminated by mutual agreement between the parties,” the board said in its statement.
“The company will continue to prioritise the divestment of its non-core Italian operations, and further updates will be provided, as appropriate, in due course.”
At 0928 BST, shares in Coro Energy were down 20.49% at 0.32p.