Dec 23 2009
Ballard Power Systems has closed an agreement with a financial institution to monetize its rights under the Share Purchase Agreement with Ford Motor Company. This agreement is related to the 19.9 percent equity interest Ballard Power Systems has in Automotive Fuel Cell Cooperation Corporation.
A total gross proceeds of about $44.5 million will be received by Ballard. A total amount of $37 million will be paid in the initial stages followed by $7.5 million contingent payment that will be paid on or before 31 January, 2013.
Bruce Cousins, Chief Financial Officer of Ballard Power Systems, remarked that the company’s attempt in monetizing the non-core investment is apt as a result of Ford Motor Company’s credit rating and the recent improvements in the public debt market conditions.
John Sheridan, CEO and President of Ballard Power Systems, remarked that the cash proceeds from this transaction enhances the company’s finances to execute its clean energy growth strategies in applications that include motive power, backup power, supplemental power and distributed generation.
A gain related to this transaction of about $34 million is expected to be registered by Ballard Power Systems in its fourth-quarter results. Fuel cell components and modules and technical services will be continuously supplied by Ballard Power Systems as the company’s business links with Daimler, AFCC, Ford and their subsidiary units are not affected by this transaction.
Source: http://www.ballard.com/