Ballard reaps $34M from stake in AFCC
Written on December 23, 2009
VANCOUVER–Ballard Power Systems expects to book a $34-million gain in its fourth-quarter results by cashing in on its 19.9 per cent equity interest in Automotive Fuel Cell Co-operation Corp. (AFCC).
Ballard said it will receive gross proceeds of $44.5 million, including a $37-million payment on Monday, from a financial institution which has agreed to monetize its 19.9 per cent equity interest in AFCC.
A further $7.5 million will be due upon maturity of a share purchase agreement between Ballard and Ford Motor Co. (NYSE: F), on or before Jan. 31, 2013.
In recent years, Ballard has shifted its focus away from fuel cells for automobiles to areas such as materials handling, which includes fuel cell for forklifts in warehouses, as well as backup power units.
It retained a stake in the contract automotive business through AFCC, which it sold to Daimler AG in Ford in 2008.
Under the monetization agreement, Ballard has assigned its right to "put" or sell its shares in AFCC to Ford for $65 million plus interest after Jan. 31, 2013.
Filed in: technology.