Key Takeaways:
Weichai Power Hong Kong International Development Co. completed the sale of another 8.15 million shares in Ballard Power Systems Inc. for C$46.1 million ($33.7 million), further reducing its stake in the Canadian fuel cell maker to about 10.32%.
"All of the securities held by Weichai in Ballard, including the Common Shares, are being held for investment purposes," the company said in a regulatory filing. Weichai stated it may purchase additional shares, sell more of its holdings, or pursue a corporate transaction involving Ballard in the future.
The transactions occurred between May 13 and May 15 at an average price of C$5.65 per share. The sale follows a previous disposition of 6.9 million shares earlier in the week, which took Weichai's ownership below the 15% level required to maintain its two seats on Ballard's board of directors. Consequently, the two Weichai-nominated directors resigned.
Despite the significant selling pressure from a major shareholder, Ballard's stock has remained resilient. Shares (BLDP) rose 7.75% to $4.45 in New York on Friday, capping a week of volatile trading. The sell-down comes after a strong quarter for Ballard, which reported higher revenue and improved margins on May 5, and announced several new commercial wins with European bus manufacturers.
The series of sales reduces the holdings of what was once Ballard's largest strategic partner and shareholder. Weichai's remaining ownership now stands at 31,102,826 shares. The company's initial investment was part of a broad strategic collaboration aimed at developing the Chinese market for fuel cell vehicles.
The continued reduction of Weichai's stake signals a significant shift in the relationship between the two companies. Investors will be watching for any further sell-downs via early warning reports, as Weichai's remaining 10.32% stake still represents a significant overhang on the stock.
This article is for informational purposes only and does not constitute investment advice.
