Star Energy Sells Croatian Subsidiary to Enhance Liquidity
Star Energy Group PLC has agreed to divest its Croatian subsidiary, IGeoPen doo, to enhance liquidity by EUR5.2 million. The strategic sale aims to refocus on core UK operations following delays in government tariff announcements for geothermal projects.
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Star Energy Group PLC will sell its Croatian subsidiary, IGeoPen doo, to Enna Geo doo for an initial sum of EUR1.5 million, with Star Energy receiving EUR1.3 million. IGeoPen holds three geothermal exploration licenses in Croatia, and Enna Geo will pay an additional EUR500,000 for each license upon the commercial operation of a geothermal power plant.
This transaction is expected to release EUR5.2 million in cash previously restricted for capital commitments, allowing Star Energy to concentrate on its primary oil and gas and geothermal assets in the UK. The delay in tariff announcements by the Croatian government influenced the decision to sell, indicating potential risks in the geothermal sector.
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