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PannErgy subsidiary selling real estate

PannErgy subsidiary selling real estate PannErgy presentation snapshot
Alexander Richter 30 Mar 2010

Pannonplast Plc. owned exclusively by Hungarian geothermal development company PannErgy Plc., has sold real estate property, with the proceeds being used for the company's geothermal projects.

In a release by the Hungarian PannErgy Plc., the company announced that Pannonplast Plc, a subsidiary of PannErgy Plc. has signed an agreement to sell the real estate property of its former production unit in Székesfehérvár.

Pannonplast Plc. owned exclusively by PannErgy Plc. has signed an agreement on the sale of its real estate property of 9,000 m2 as of 12 April, 2010, which used to be the plant of its most significant industrial plastic production.
The revenue of PannErgy Plc. from the transaction is about HUF 900 million (EUR 3.4million/ US$ 4.6million) that is equal with its asset value continuously re-evaluated in the books – therefore the transaction will have no effect on the results in terms of accounting.

PannErgy Plc. emphasizes that in line with its previous announcements all revenues from the sales of its assets will be used to implement its geothermal strategy, consequently the revenues from this transaction are to be invested in its next geothermal project.

In connection with the transaction Mr Dénes Gyimóthy, CEO of PannErgy has stated: Although the financing conditions of our geothermal projects have recently improved remarkably we consider those transactions very important and beneficial, which increase the liquid cash assets of the company. We consider it especially advantageous that the transaction has taken place at a time when the effects of the economic crisis can still be felt on the real estate market.”

Source: Company announcement