The seven wells are for sale with all the ready-made licences and permissions, certificates. The wells are available for sale together or one by one.
- We have 7 wells located on 5 carefully selected sites in Hungary. The aggregated maximum water yield amounts to 1.6 million m3 per annum with pH values ranging between 7.0 and 7.7. The wells, the sites, and all related permits and licenses belong to 5 project companies organized under one holding company which is the subject of the envisaged transaction.
- Management of the holding company has invested 3 years into the selection of the best available locations, the drilling of the wells, and the qualification of mineral water. The first step of the selection was thorough geological and hydro-geological research which identified several locations with protected aquifers and high-quality mineral water. However, only a few remained after filtering out those with weak water resources and which were in the vicinity of polluted industrial areas or other wells. Protected heritage and natural areas were excluded and the remaining locations were ranked by their accessibility to the utility infrastructure and road network and the top 5 of those have been selected and acquired.
- All the wells are built using state-of-the-art technology and materials complying with strict industry standards and regulations. The installed filters and pipelines are designed specifically for mineral and drinking water extraction preventing any contamination to access the water and the water reserve. Furthermore, the materials used in its construction comply with strict food safety requirements and they also prevent the dissolution of noxious substances.
- The mineral water of all sites is rated as pure mineral water free of contamination and is recognized by EU Directive 2009 / 54 / EC and 2003 / 40 / EC. Each project company owns a water rights operation permit that allows for water extraction from the existing wells. The permits are valid for approximately 10 years but can be extended. The OCMO (Office of the Chief Medical Officer) permissions for certifying the water as mineral water have also been obtained. It allows bottling and distributing the mineral water under the registered trade name that can be changed easily.
- The maintenance cost of these projects amounts to around USD 37k per annum. Water stock contribution is a concession fee paid to the state, the amount of which depends, inter alia, on the quantity of the suspended or extracted water. In case of suspension, the contribution payable for the water reserves in this portfolio is approximately USD 28k per annum. Physical maintenance includes lawn mowing service for the area of the 5 sites and maintenance of the fences. Administrative costs represent bookkeeping and other admin costs of the project companies. The management of the holding company is committed to providing and organizing all these services to the investor post-transaction.
- We are looking for an acquiring partner or investment for our sites. The projects are developed with quality wells and we have all the permissions and licenses to start the bottling.