Christchurch-based electricity network company Orion NZ has reduced it s interest in fledgling energy firm, Whisper Tech.
The Christchurch-based developer and manufacturer of small scale co-generation units has been sold 45 per cent of Whisper Tech to the other main shareholder, Meridian Energy, for $12 million.
Orion has retained a
5 per cent stake.
Orion CEO Roger Sutton said Meridian was in a better position to take Whisper Tech forward.
"Whisper Tech has achieved remarkable success since Orion first invested in it in 1995 and we continue to believe that it has outstanding potential."
Mr Sutton said the purchase price would recoup Orion's investment in Whisper Tech over the last three years but would not cover the total early development costs of $15m.
Because all the investment costs up to March had been written off, however, the sale would result in a profit in 2007.
Last year Orion sold its stake in listed Australian renewable energy company Energy Developments Ltd for a profit of about $17m.
Meridian Energy chief executive Keith Turner sa id Whisper Tech had some exciting prospects, which could deliver energy efficiencies at the same time as reducing greenhouse gas emissions.
"There is a huge market worldwide for technologies that have these attributes and we believe that Whisper Tech is a unique product that has the potential to be adopted on a significant scale," he said.
In the short-term Whisper Tech would focus on being able to manufacture a product to work with traditional forms of home heating.
- NZPA
