Engine and fuel technology group Orbital Corporation has sold a 12 per cent stake in its Synerject LLC fuel injection systems joint venture to partner Continental Corporation for $US6 million.
Under terms of the deal, Continental will take its stake in Synerject to 70 per cent, with Orbital retaining the remaining interest.
Orbital said it would record a before tax profit of $US1.5 million on the sale.
Chief executive Terry Stinson said the sale would increase the company’s cash reserves to around $10 million.
“The $US6 million will be used to support our growth aspirations including; existing unmanned aerial systems programs; expansion into new UAS markets and products; alternative fuel programs; other new product development; capital management; and potential acquisitions that fit within our strategy,” Mr Stinson said in a statement.
At close of trade today, Orbital shares were down 2.78 per cent, trading at 35 cents.
