DaimlerChrysler and Ford to Invest CDN $55 Million in Ballard Power Systems
VANCOUVER BC, CANADA — Ballard Power Systems Inc. announced on Dec. 17 that it has exercised its right to call a CDN $55 million investment from its Vehicular Alliance partners, DaimlerChrysler AG and Ford Motor Company, pursuant to a call agreement entered into by the parties on December 31, 2003.
DaimlerChrysler will purchase 2,431,388 common shares of Ballard at CDN $12.34 per share, for an aggregate purchase price of CDN $30 million. Ford will purchase 2,026,157 common shares of Ballard at CDN $12.34 per share, for an aggregate purchase price of CDN $25 million. Under the memorandum of understanding between the parties dated July 8, 2004, if Ballard did not call the investment before year end, the share price would have reset to market price. The transaction is expected to close the first week of January.
"This investment is a strong indication of our Alliance partners´ continued commitment to automotive fuel cells and their continued support of Ballard," said Dennis Campbell, Ballard´s president and chief executive officer. "Discussions with respect to the transaction announced on July 8 of this year are ongoing and we continue to expect completion in the first half of 2005."