VANCOUVER, B.C. - Ballard Power Systems (TSX:BLD) said Tuesday it has sold its 19.9 per cent interest in Automotive Fuel Cell Co-operation Corp. to an unidentifed financial institution for $44.5 million.
"The cash proceeds from this transaction bolster Ballard’s strong balance sheet and strengthen our positioning to execute our clean energy growth priorities," Ballard president and chief executive John Sheridan said.
Under the deal, Ballard will immediately receive a $37-million payment for its stake in the automotive fuel cell business.
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.
Ballard held the stake in the business after it spun off its automotive fuel cell business to Daimler AG and Ford in 2008.
Ballard also announced Tuesday that it has signed a supply agreement with Daimler that provides for at least $24 million in revenue over 18 months starting April 2010 for the company’s for fuel cell car and bus programs.
In recent years, Ballard has shifted its focus away from fuel cells for cars and buses to areas such as forklifts and backup power units.
Shares in Ballard were down four cents at $1.93 on the Toronto Stock Exchange on Tuesday.
