1/18/2010
Dantherm Power A/S in new partnership
Download company announcement no 1/2010 issued by Dantherm A/S as pdf.
Dantherm Power A/S in new partnership
Dantherm has today entered into a partnership agreement related to its subsidiary Dantherm Power A/S. Together with Ballard Power Systems Inc. and Danfoss Ventures A/S, capital in the amount of DKK 40m is being injected into Dantherm Power A/S. All else being equal, the agreement, which does not affect the Dantherm group’s financial outlook for 2009, will strengthen the Dantherm group’s EBITDA in 2010.
Fuel-cell partnership with prospects
Dantherm A/S has today entered into an agreement concerning the continued operation of the group’s wholly owned subsidiary Dantherm Power A/S in partnership with the Canadian company Ballard Power Systems Inc. and Danfoss Ventures A/S. The three partners are injecting new capital in the amount of DKK 40m to Dantherm Power A/S. Of this, Dantherm A/S is contributing DKK 8m. The capital increase is taking place in two steps based on jointly defined milestones for Dantherm Power. It is expected that Dantherm Power hereby is provided with the necessary cash required to implement the agreed business plan.
Furthermore, asset contributions are being made in the form of IP rights and know-how related to fuel-cell stacks from Ballard and knowledge and products related stationary fuel-cell systems from Danfoss Ventures. Ballard and Danfoss Ventures will also contribute market knowledge and market access as well as production technologies. The total value of these asset contributions is DKK 22m.
The partners have also agreed to strengthen the Dantherm Power A/S organisation with selected specialists from Ballard Power Systems and Danfoss Ventures.
Following this agreement Ballard Power Systems will take over the controlling interest in Dantherm Power A/S and Dantherm A/S and Danfoss Ventures A/S will be minority shareholders.
In connection with the new partnership agreement, Torben Duer, President & CEO of Dantherm, says:
”Ballard and Danfoss are two strong global partners for Dantherm Power. Together we have the strength to provide both financial and developmental latitude for Dantherm Power in the coming years. The partnership between Dantherm, Ballard and Danfoss will position Dantherm Power as a leading company within the development and production of fuel-cell solutions for power backup solutions and micro power plants. At Dantherm, we are convinced that the new partnership offers the best possible potential for the future success of Dantherm Power.”
Dantherm Power A/S is domiciled in Hobro and has approx. 40 employees. The company will continue under the same name and will continue to operate out of Hobro, Denmark.
Agreement already factored into outlook for 2009 and strengthening EBITDA in 2010
As a result of the agreement, Dantherm realises a net loss with no cash-flow effect of approx. DKK 40m, relating primarily to the impairment of capitalised development costs. The earnings impact of the agreement does not affect the previously announced financial outlook for 2009.
The new partnership agreement which takes effect today is, all else being equal, expected to strengthen Dantherm’s EBITDA for 2010.
Dantherm Power A/S has so far been a wholly owned subsidiary of Dantherm A/S. The group’s future ownership stake of 38% means that Dantherm Power A/S will no longer be classified as a ‘group enterprise’, but as an ‘associate’. The new structure implies a change to the principles for recognising the investment in Dantherm Power A/S, and the earnings impact from Dantherm Power’s activities will be categorised as discontinued activities in Dantherm’s consolidated financial statements for 2009.
Any enquiries concerning this announcement can be directed to President & CEO Torben Duer on tel. +45 99 14 90 14.
In case of doubt the Danish version of this announcement is applicable