Daldrup & Söhne AG concludes complete sale of Taufkirchen and Landau geothermal plants

Geothermal power plant in Landau, Germany (source: flickr/ webguy63, creative commons)
Alexander Richter 13 Jan 2020

German drilling and geothermal company Daldrup & Söhne AG has concluded the sale of the remaining shares in Geysir Europe GmbH to Luxembourg-based IKAV Invest, which includes the sale of the Taufkirchen and Landau geothermal plants.

Announced in a release, drilling technology and geothermal energy specialist Daldrup & Söhne AG reports having signed a contract with IKAV Invest S.à.r.l., Luxembourg, for the sale of the remaining shares (48.944 %) in Geysir Europe GmbH. The agreement includes the sale of the Taufkirchen and Landau power plants.

Initially, the seller will receive a purchase price payment of EUR 1.0 million under this agreement. Additional payments are linked to the achievement of defined productivity levels of the two power plants in the future. Further claims of the Daldrup & Söhne companies against the sold companies will be settled in the course of the coming years. The economic transfer of the shares will take place with effect from 31 December 2019.

In this context, from today’s point of view – subject to the audit by the appointed auditors, which will start shortly – value adjustments on loans and services rendered for the sold companies in the amount of approximately EUR 15 million will already have to be made in the annual and consolidated financial statements of Daldrup & Söhne AG for the financial year 2019.

On the basis of the preliminary results available at the end of November 2019, Daldrup & Söhne AG will, from today’s perspective, report a negative EBIT result for the financial year 2019 of approximately EUR 14 million after scheduled depreciation of approximately EUR 2.2 million with a total output of approximately EUR 38 million. The operating result of the AG forecast at the time will thus be achieved (2019: EBIT expected to be around EUR 1 million), but due to the above-mentioned value adjustments it will fall well short of the overall forecast.

On 12 July 2019, IKAV had already acquired 48.9% of the shares in Geysir Europe GmbH and 1.0% of the shares in geox GmbH (see Corporate News of 19 July 2019). The project company Geothermie Neuried GmbH & Co. KG remains within the Daldrup Group for the purpose of further development.

The sale is a major step towards the debt reduction of the Daldrup Group in the amount of approximately EUR 42 million in the context of the intended deconsolidation of the geyser activities. As a consequence of the deconsolidation, the consolidation scope of the Daldrup & Söhne AG Group will be significantly streamlined already for the financial year 2019. The forecast for the Group result 2019 published at the end of May 2019 is no longer matched by comparable structures and a comparable scope of consolidation as of the balance sheet date 31 December 2019.

Source: Company release