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Hungarian PannErgy rationalises business selling Miskolc subsidiary

Miskolc geothermal heat plant, Hungary (source: MIskolci Geotermia)
Alexander Richter 12 Dec 2017

Hungarian geothermal company PannErgy rationalises business selling stake in subsdiary outside of the core of its geothermal heating business in Hungary.

Hungarian geothermal developer and operator PannErgy Plc announces that its subsidiary, PannErgy Geothermal Power Plants Ltd has sold its 100 percent holding in its own subsidiary, CSRG Energy Ltd.

With this move, PannErgy Group continues to rationalize its portfolio elements, and consequently selling CSRG Energy Ltd, having a 24 percent stake as a professional investor in the Miskolc-based Geo-Wendung Ltd, which uses secondary heat in its operations, to a professional investor registered in Hungary. With respect to the utilization of secondary heat, the Company still aspires to collaborate with external partners.

The selling price of the stake that represents 100% of CSRG Energy Ltd’s equity amounting to HUF 150 million (around $560k) corresponds to the given book value, i.e. it is HUF 150 million in total, and had paid up by the buyer following the execution of the share transfer agreement, by 12. December 2017.

The shares will be transferred to the buyer upon the payment of the purchase price. The disposal of CSRG Energy Ltd will not generate any transaction-related result, neither profit, nor loss.

Source: Company release