VANCOUVER, British Columbia -- Ballard Power Systems Inc. said on Thursday it has finalized an agreement to sell its German subsidiary to DaimlerChrysler AG and Ford Motor Co., which both have stakes in the Canadian fuel cell developer.
Under the deal, first announced last July, Ballard will cancel 7.6 million shares it was scheduled to issue to DaimlerChrysler, and will get back for cancellation 9 million shares held by Ford.
Ballard will also be reimbursed for an estimated $20 million in expenses it has incurred since August 2004 at the unit, which will become a wholly owned subsidiary of the two automakers.
The arrangement must still be approved by Ballard shareholders.
Ballard said selling the unit it bought in 2001 will cut annual cash consumption by about $25 million and let it concentrate on the development of fuel cell stacks rather than the supporting engine technology the German unit worked on.
The sale was part of a restructuring of Ballard's relationship with the automakers, who agreed last year to inject another $59 million into the Vancouver-based firm's research and development efforts.
DaimlerChrysler's and Ford's combined stake in Ballard will drop to 32.7 percent from 35 percent.