Ballard Power signs collaboration with Weichai Power
Ballard Power Systems announced at a public event in Jinan, Shandong Province, China that it has entered into a strategic collaboration with Weichai Power, which includes a substantial equity investment by Weichai in Ballard of approximately $163 million, representing a 19.9% interest in the company and reflecting a price based on a 15% premium to the 30-day VWAP, establishment of a joint venture to support China's burgeoning Fuel Cell Electric Vehicle, or FCEV, market, a $90 million technology transfer program to the JV related to Ballard's next-generation LCS fuel cell stack and power modules for bus, commercial truck and forklift applications in China, and a commitment by Weichai to build and supply at least 2,000 fuel cell modules for commercial vehicles in China, as announced by Weichai. In addition, Zhongshan Broad-Ocean Motor - a current Ballard strategic investor and Chinese partner - has agreed to invest a further approximately $20 million at the same 15% premium to maintain its 9.9% ownership position in Ballard. As a result, the Weichai and Broad-Ocean equity investments in Ballard will total approximately $183 million. All the foregoing transactions are expected to close in Q4 2018, subject to completion of definitive agreements, regulatory approvals and other customary closing conditions.