Aim Bulletin
Star Energy agrees to sell loss-making Croatian geothermal subsidiary
By Josh White
Date: Friday 24 Apr 2026
(Sharecast News) - Star Energy Group agreed on Thursday to sell its loss-making Croatian geothermal subsidiary, IGeoPen, to fellow investor Enna Geo in a transaction that would release €5.2m of restricted cash and sharpen the AIM-traded energy company's focus on its profitable UK onshore operations.
Under the terms, Star Energy would receive initial cash consideration of €1.3m, with a further earn-out potential of €1.5m based on commercial progression of three geothermal projects held by the subsidiary.
IGeoPen recorded a pre-tax loss of €3.2m and accumulated net liabilities of €5.5m as of 31 December 2024, with an anticipated further loss of €1.6m anticipated for 2025.
The sale was expected to complete in the second half of 2026.
The financial earn-out comprised €0.5m per licence payable on the commercial operation date of a geothermal power plant developed on each of the three Croatian licences held by IGeoPen, namely Ernestinovo, Sječe and Pčelić.
Star Energy's potential share of the earn-out totalled €1.5m.
The company said the transaction, deemed a related-party matter given Enna Geo's involvement, would strengthen the balance sheet by releasing substantial restricted cash while removing future capital commitments relating to the Croatian geothermal developments, which had proven slower to monetise than originally anticipated.
Ross Glover, chief executive, said the move reflected a disciplined approach to capital allocation and strategic refocusing.
"This transaction is about capital discipline, simplification and strategic focus," he said.
At 1358 BST, shares in Star Energy were up 6.92% at 17p.
Reporting by Josh White for Sharecast.com.
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