Lightbulb maker to sell factory stake
Christchurch-based energy-efficient lightbulb maker Energy Mad has agreed to sell its 20 per cent stake in its Chinese joint venture factory.
The company will retain its preferential supply arrangements with the purpose built factory, Fujian Ecobulb Co Ltd.
Energy Mad said its Chinese partners in the joint venture had offered to buy its 20 per cent shareholding which would provide the company with a total of $1.7m.
An agreement with the Chinese factory retains existing terms with Energy Mad, including the preferential supply, payment and exclusivity terms.
The sale will see Energy Mad clear $400,000 profit from the recovery of investment loan capital in the joint venture which had been previously impaired in the company's 2008 financial statements.
The stock last traded at 37 cents a share, off its lowest level of 28c a share a week ago, but still well down from its $1 a share float price in October 2011.