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Ballard Closes Strategic Collaboration With Weichai Power (Including $163.6 Million Equity Investment)
Wednesday, November 14, 2018Company Profile | Follow Company
Burnaby, BC, November 14, 2018--(T-Net)--Ballard Power Systems (NASDAQ: BLDP; TSX: BLDP) today announced that the Company has successfully closed a strategic collaboration transaction with Weichai Power Co., Ltd. ("Weichai"; http://en.weichaipower.com/), initially detailed in a press release issued on August 29, 2018.
"This strategic collaboration with Weichai - a leading automotive equipment manufacturer specializing in the production of powertrains, automobiles, intelligent logistics, automotive parts and components - underscores our high conviction in the opportunity for Fuel Cell Electric Vehicles, or FCEVs, in China's Heavy Duty Motive market," said Randy MacEwen, Ballard President and CEO. "We see our collaboration with Weichai as an important validation of the FCEV value proposition and Ballard's technology leadership in PEM fuel cells. We expect our partnership to be a positive long-term catalyst for Ballard's business and for shareholder value."
Ballard's strategic collaboration with Weichai includes the following key elements:
As a result, the Weichai and Broad-Ocean equity investments in Ballard have generated total gross proceeds of approximately $183.8 million. The use of proceeds are expected to include investment in Ballard's core fuel cell business, equity contributions to a joint venture company ("JV") established by Weichai and Ballard to finance Ballard's ownership position in the joint venture's operations, and support of potential M&A transactions.
The Weichai and Broad-Ocean investments are subject to 2-year "standstill" and resale restrictions (subject to customary exceptions). For so long as Weichai holds at least 15% of Ballard's outstanding shares, it will have the right to nominate two directors to Ballard's board of directors, and Ballard will expand its board from the current seven directors to nine directors. Weichai has also agreed that, in the event of a third-party offer to buy Ballard, Weichai will have the right to make a superior proposal or otherwise must vote its shares in accordance with the Ballard board recommendation.
Ballard is continuing discussions with the Synergy-Ballard joint venture and other partners in China to address current issues and future opportunities.
About Ballard Power Systems
Ballard Power Systems (NASDAQ: BLDP; TSX: BLDP) provides clean energy products that reduce customer costs and risks, and helps customers solve difficult technical and business challenges in power and energy. To learn more about Ballard, please visit www.ballard.com.
This release contains forward-looking statements concerning future events or developments, including the closing of the announced transaction, the performance of the joint venture, anticipated product development efforts and product performance, customer benefits and market demand for our products. These forward-looking statements reflect Ballard's current expectations as contemplated under section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any such forward-looking statements are based on Ballard's assumptions relating to its financial forecasts and expectations regarding its product development efforts, manufacturing capacity, and market demand.
These statements involve risks and uncertainties that may cause Ballard's actual results to be materially different, including general economic and regulatory changes, detrimental reliance on third parties, performance risks related to existing joint venture and partners, successfully achieving our business plans and achieving and sustaining profitability. For a detailed discussion of these and other risk factors that could affect Ballard's future performance, please refer to Ballard's most recent Annual Information Form. Readers should not place undue reliance on Ballard's forward-looking statements and Ballard assumes no obligation to update or release any revisions to these forward looking statements, other than as required under applicable legislation.
This press release does not constitute an offer to sell or the solicitation of an offer to buy securities. The Ballard Common Shares have not been registered under the United States Securities Act of 1933, as amended, or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
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