KEY POINTS:
Whangarei-based Northpower has pulled out of negotiations to buy Tongan electricity company Shoreline Power.
Northpower chairman Warren Moyes said the company recognised that it was untenable to continue the sales process after riots in November, The Dominion Post reported today.
"Both parties couldn't complete the sales process given the riots and the ensuing political drama," Mr Moyes said.
Shoreline's offices were burnt down in the rioting, which left seven people dead, with much of the central business district of Tonga's capital Nuku'alofa destroyed.
Mr Moyes said Northpower was still in touch with the Tongan Government and was interested in providing advice and management services to Shoreline.
It was awaiting a reply from the government on the matter, he said.
Shortly before the riots, Shoreline announced "a preliminary sale agreement" had been reached with Northpower.
When king Siaosi Tupou V took the throne in September, following the death of his father king Taufa'ahau Tupou IV, he pledged to give up all his business and commercial interests to rule the South Pacific island nation.
He had said he wanted 60 million Tongan pa'anga ($43.60 million) for Shoreline, previously the state-owned Tonga Electricity Power Board, given to him by the royal-controlled government eight years ago on a 20-year lease.
- NZPA
