Energy Conversion Devices, Inc. (ENER) through its affiliate Ovonic Battery Company, Inc. and Chevron Technology Ventures LLC, a subsidiary of Chevron Corporation (CVX), have agreed on Wednesday to explore strategic alternatives for Cobasys LLC, which designs, manufactures and integrates advanced battery system solutions for transportation markets, including Hybrid Electric Vehicles.
Cobasys is a joint venture between Chevron Technology Ventures LLC, a subsidiary of Chevron Corporation and Energy Conversion Devices, Inc.
The parties, Ovonic Battery and Chevron Technology Ventures, have not disclosed the timing or the alternatives under consideration. ECD Ovonics and CTV have engaged financial advisors to assist in the process. ECD Ovonics will be represented by UBS Investment Bank and Goldman, Sachs & Co will represent CTV.
The Rochester Hills, Michigan-headquartered Energy Conversion Devices owns Cobasys LLC, which has already been awarded contracts to supply the battery and control systems for eight major hybrid electric vehicle production and/or development programs. These include providing battery systems and controls for the Saturn Aura and the Saturn Vue Green Line, the recently announced Chevrolet Malibu hybrid and a contract to develop lithium battery systems for the new General Motors plug-in hybrid development program.
"We're honored to have been selected as the supplier for the majority of North American and European OEM hybrid battery system programs awarded over the last two years. We are now well positioned to capitalize on future opportunities with these and other customers and to take the next logical step in our growth strategy," said Thomas S. Neslage, President and Chief Executive Officer of Cobasys.
ENER gained $1.30 or 4.08% in the after hours trading at $33.20. CVX closed Wednesday's trading at $68.32, up $0.48 or 0.71% on a volume of 11.39 million shares.
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