Westport Shares Rally After JV Agreement Signed With Volvo
By Robb M. Stewart
Westport Fuel Systems' shares jumped Monday after a deal was signed to set up a joint venture with Swedish truck maker Volvo to accelerate commercialization of the Canadian company's fuel-system technology.
In morning trading, the shares were 15% higher at C$8.61 in Toronto, narrowing the fall in the new year to 1.3%. On Nasdaq, the shares were up 14% at $6.36, and are now down 3.6% year-to-date.
Westport said it signs an investment agreement that will see Volvo buy a 45% stake in a joint venture between the companies for roughly $28 million. The deal includes an additional $45 million as an "earn out" for Volvo, depending on the performance of the venture.
Westport, which last July said a letter of intent had been signed to form a joint venture, will contribute certain assets, intellectual property and business to the venture. The companies expect the venture will become operational after the formal closing of the deal, which is currently set to occur in the second quarter of 2024.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
March 11, 2024 11:31 ET (15:31 GMT)
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