VANCOUVER — Chinese company Weichai Power has signed a deal to become the largest shareholder in Ballard Power Systems and establish a joint venture in China with the Canadian fuel cell company.
The companies announced an agreement that will see Weichai acquire a 19.9 per cent stake in Ballard for $163 million.
Zhongshan Broad-Ocean Motor Co. Ltd. — a current Ballard investor and Chinese partner — has also agreed to invest a further $20 million to maintain its 9.9 per cent stake in Ballard.
As long as Weichai maintains at least a 15 per cent stake in Ballard it will have the right to nominate two directors to Ballard’s board, which will expand to nine directors from seven.
The Chinese firm has also agreed that, if a third-party makes an 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.
Weichai is an automotive and equipment manufacturer specializing in powertrains, automobiles, intelligent logistics, automotive parts and components.
Companies in this story: (TSX:BLDP)
The Canadian Press