ALTEO Concludes the Acquisition of Two Companies

The Hungarian energy company ALTEO has acquired shares embodying 100% of the share capital of the energetics company Energikum. Energikum holds the stake embodying 99% of the issued capital of Energigas Ltd., which owns a biogas plant in Nagykőrös, SE of Budapest. ALTEO is currently the 1% minority shareholder of Energigas. ALTEO also operates the Nagykőrös biogas plant, which produces electricity from biomethane generated from organic waste.

The acquisition of the biogas plant with a nominal electricity generation capacity of 2 MW is fully in line with ALTEO's strategy and will also strengthen its role in the circular economy. Beyond the current mode of operation, it is worth noting that the produced biomethane is suitable, under certain conditions, to be a substitute for natural gas and can even feed into the natural gas distribution system, which represents valuable potential for the appreciation of the investment project in the future.

Furthermore, ALTEO – as buyer – entered into a sale and purchase agreement for the purchase of the business unit representing 33% of the registered capital of ECO-FIRST, in which ALTEO is already a 67% shareholder. ECO-FIRST is an active player in the trade of waste and, as such, plays an important role in the procurement of raw materials for the Nagykőrös biogas plant.

The conclusion of the contracts is one of the steps of the transactions. The ownership of the shares embodying 100% of the share capital of Energikum and the ownership of the business unit representing 33% of the registered capital of ECO-FIRST will be transferred to ALTEO once the conditions detailed in the contracts have been met.

For closing the acquisition of Energikum, it is also necessary to obtain the approval of the authorities and the bank involved in the financing of Energigas.