Business
Weichai Power Strategic Investment Approved
Weichai Power Strategic Investment Approved.
About this update from Ceres Power Holdings Plc
[{"type":"text","content":"\n \nRNS Number : 3239S Ceres Power Holdings plc 25 June 2018 \n\n \n \n25 June 2018\n \nWEICHAI POWER'S STRATEGIC EQUITY INVESTMENT IN CERES POWER RECEIVES FINAL CHINESE APPROVAL\n \nCeres Power (AIM: CWR, \"Ceres Power\", \"Ceres\"), developer of the SteelCell®, a world-leading, low cost Solid Oxide Fuel Cell (SOFC) technology, is pleased to announce that Weichai Power (\"Weichai\") has received relevant approvals from the People's Republic of China (PRC) for its proposed equity investment in Ceres announced on 16 May 2018. \n \n· Further to the announcement made by Ceres on 16 May 2018, relevant competent authorities in the PRC have approved the proposed equity investment by Weichai in the Company \n· The approval covers the initial investment of c.£17m to take a 10% stake in the Company and is priced at 15.08p / share, an 18% premium to the date of the initial announcement \n· Approval also covers the additional potential equity investment of c£23.2m which is conditional on the signing of further commercial agreements before 30 November 2018 \n· Approval marks a significant milestone before the formal start of the relationship with Weichai, one of the leading automobile and equipment manufacturing companies in China. \n· The parties will initially work on jointly developing and launching a fuel cell range extender system for China's fast growing electric powered bus market\n \nThe Company will now seek shareholder approval for authorities to issue the Ordinary Shares arising from these investments, and will shortly send out a Notice to a General Meeting.\n \nAs announced, the second potential equity investment of c.£23.2m will be by way of warrant at an exercise price of 16.45p/share, a 29% premium on the market value at the time of the initial announcement. This warrant will allow Weichai to hold in aggregate a 20% equity holding in Ceres Power and will be automatically exercised on the signing of the further commercial agreements expected later in 2018, subject to certain conditions. \n \nAlongside the investment, Ceres and Weichai intend to enter a broader strategic collaboration to jointly develop and launch a SOFC ...