(Reuters) – South Korea-based SK Group will have a $ 1.5 billion 9.9% stake in hydrogen fuel cell maker Plug Power Inc and form a joint venture to help supply hydrogen fuel cell products to Asian markets, the companies said.
As part of the deal, an American unit of the SK Group will acquire approximately 51.4 million shares of Plug Power, based in Latham, New York, at a price of $ 29.2893 per share.
Plug Power’s shares rose 20% in extended trading on Wednesday, after closing 7% more firmly.
The agreement comes at a time of strong demand for clean energy, signaling a gradual shift in polluting fossil fuels in the coming years.
The South Korean government announced the 2019 Hydrogen Economy Map by 2040 with ambitious targets, including more than 5 million tons of hydrogen per year, and expects the cumulative economic value of its hydrogen economy to reach ~ $ 40 billion by 2040.
If a deal is reached, SK Group-Plug Power’s investment is expected to close in the first quarter of 2021.
Morgan Stanley & Co. LLC served as a financial advisor and Goodwin Procter LLP served as a legal advisor to Plug Power.
Reporting by Arundhati Sarkar in Bengaluru; Editing by Amy Caren Daniel and Sherry Jacob-Phillips