Westport To Sell Portion of JV
By pdamon23 August 2016
Westport Fuel Systems Inc. has entered into an agreement to sell an 11.7% interest in the Weichai Westport Inc. (WWI) joint venture for gross proceeds of approximately U.S. $7.2 million to Weichai Holding Group Co. Ltd. and an additional undisclosed purchaser.
Associated with the sale, Westport Fuel Systems will also receive a dividend payment of approximately U.S. $3.5 million from the joint venture, generating total gross proceeds of approximately U.S. $10.7 million.
The company said the transaction is consistent with its focus on strengthening its liquidity position. Westport Fuel Systems will hold a minority interest in WWI.
Westport Fuel Systems continues to advance development of its High Pressure Direct Injection 2.0 products, with commercial launch in China planned for 2017. In addition, it has signed a framework agreement with WWI for the supply of alternative fuel system components.
“China remains an important market for us and we are dedicated to supporting our OEM customers,” said Nancy Gougarty, CEO, Westport Fuel Systems. “There is increasing urgency around the globe to address urban air quality issues and natural gas fueled vehicles can play an integral role in reducing emissions.
“The WWI joint venture remains well positioned to support China’s transportation market and we continue to advance the commercialization of our HPDI technology in support of the heavy-duty sector. Our ongoing relationship with the joint venture will provide a strong foundation in support of our efforts to grow Westport’s presence in both these market segments. Further, this sale helps address our corporate goal of strengthening our balance sheet.”