Christchurch-based light bulb maker Energy Mad has agreed to sell its 20 per cent stake in its Chinese joint venture factory for NZ $1.7 million ($1.4 million).
Stuff.co.nz reports that, as part of the agreement, the company will retain its preferential supply, payment and exclusivity terms with the factory.
The purpose built factory, Fujian Ecobulb Co Ltd specialises in energy efficient light bulbs.
The sale price is in line with the estimate which Energy Mad made last month. It will mean that the company will clear $400,000 profit from the recovery of investment loan capital in the joint venture which was impaired in the company's 2008 financial statements.
The company said the sale will add strength to the company’s balance sheet and leave it in a good position to expand into the US, Australia and New Zealand.