LATHAM, NY, 06 JANUARY 2021 (GLOBE NEWSWIRE) – Plug Power Inc. (NASDAQ: PLUG), a leading provider of hydrogen fuel cell and fuel solutions enabling e-mobility, and SK Group, one of the leading South Korean business groups, announced today that the companies plan to pursue a strategic to form partnerships to accelerate hydrogen as an alternative energy source in Asian markets. Through this partnership, Plug Power and SK Group aim to supply hydrogen fuel system systems, hydrogen stations and electrolysers to the Korean and broader Asian markets. In partnership with this partnership, the companies have also entered into a definitive agreement with SK Group to make a strategic investment of $ 1.5 billion in Plug Power and announce a plan to establish a joint venture in South Korea. establish to support the fast-growing Asian market. The combination of SK Group’s significant presence and leadership in the entire energy industry in Asia and its strategic direction in portfolio transformation to green via hydrogen economy with Plug Power’s leadership in hydrogen fuel systems, fuel stations and green hydrogen generation, is a powerful team to accelerate growth. hydrogen economy in Asian markets.
In January 2019, the South Korean government announced the Hydrogen Economy Roadmap to 2040, with ambitious goals, including: more than 5MM tons of hydrogen per year, more than 6MM of fuel cell EVs, 1200 refueling stations and 15 GW of fuel cell power generation, and expects the cumulative economic value of its hydrogen economy will reach $ 40 billion by 2040. Plug Power has proven its ability to scale a hydrogen business in North America as a world leader in the hydrogen economy. The opportunity to work with SK provides an attractive and timely opportunity to establish a foothold in this market with one of South Korea’s leading industrial conglomerates,
“SK Group has an established strategy to expand the hydrogen economy in and outside South Korea,” said Andy Marsh, CEO of Plug Power. “The current relationship with SK Group offers immediate strategic benefits to Plug Power to accelerate the expansion into Asian markets – and is intended to result in a formal joint venture (JV) by 2022. Because of the complementary strengths in this partnership, we expect it to grow rapidly and generate significant revenue from the joint venture that is incremental to our 2024 plan. ”
“Plug Power is a leading player in the hydrogen industry with decades of experience and an excellent business model,” said Hyeongwook Choo, Head of Hydrogen Business Development Center at SK Holdings and President and CEO of SK E&S, a leading company in clean energy. is said with renewable energy. energy, LNG and power station businesses around the world and a subsidiary of SK Holdings. ‘This partnership between Plug Power and SK will provide important and solid opportunities in the hydrogen industry, creating value for society. SK Group focuses and invests actively in the ESG sector, and Plug Power will be one of our excellent footprints in this strategy. ”
This investment represents the largest US PIPE for clean energy in the last 20 years (based on the PrivateRaise PIPE database for completed transactions and contains common stock, preference shares, convertible preference shares and convertible debt). Additional details of the investment include:
Conditions
Under the terms of the investment, a US subsidiary of SK Group will make a $ 1.5 billion investment in Plug Power by acquiring approximately 51.4 million shares of ordinary shares at a price of $ 29.2893 per share, the 30-day VWAP from 5 January.de, 2021 at a zero percent discount. The investment is expected to represent a pro forma ownership stake of 9.9% in Plug Power.
Timing
The investment transaction is subject to customary closing conditions and approvals of the regulations, and is expected to close in the first quarter of 2021
Advisors
Morgan Stanley & Co. LLC serves as financial advisor and Goodwin Procter LLP acts as legal advisor to Plug Power.
About Plug Power
Plug Power is building hydrogen economy as the leading provider of comprehensive hydrogen fuel cell solution. The company’s innovative technology drives electric cars with hydrogen fuel cells amid a continuing paradigm shift in the power, energy and transportation industries to address climate change and energy security while achieving sustainability goals. Plug Power has created the first commercially viable market for hydrogen fuel cell technology. As a result, the company, more than anyone else in the world, has deployed more than 40,000 electronic mobility fuel systems and has become the largest buyer of liquid hydrogen, building and operating a hydrogen highway in North America. Plug Power delivers a significant value proposition to end customers, which includes significant environmental benefits, efficiency gains, fast fuel and lower operating costs. Plug Power’s vertically integrated GenKey solution combines all the critical elements to deliver power, fuel and service to customers such as Amazon, BMW, The Southern Company, Carrefour and Walmart. The company now leverages its expertise, modular product architecture and fundamental customers to expand rapidly to other key markets, including non-exempt motor vehicles, robotics and data centers. Learn more at www.plugpower.com.
Safe Harbor Statement
This notice contains ‘forward-looking statements’ within the meaning of the Private Security Litigation Reform Act 1995 which sets out significant risks and uncertainties regarding Plug Power Inc. (‘PLUG’) includes, but is not limited to, statements about PLUG’s expectations regarding the planned joint venture with SK, including when and if the joint venture will take place, the scope and conditions of the joint venture and the potential growth and revenue related to the planned joint venture, the expansion into Asian markets and the expected date for the conclusion of the investment transaction. You are cautioned that such statements should not be read as a guarantee of future performance or results, and that they will not necessarily be accurate indications of the times at which, or at, such performance or results would be achieved. Such statements are subject to risks and uncertainties that could result in actual performance or results differing materially from those expressed in these statements. For a further description of the risks and uncertainties that may result from actual results differing from those expressed in these forward-looking statements, as well as risks related to the business of PLUG in general, see PLUG’s public submission to the Securities and Exchange Commission, including the “Risk Factors” section of PLUG’s annual report on Form 10-K for the year ended 31 December 2019 and quarterly reports on Form 10-Q for the quarters ended 31 March 2020, 30 June 2020 and 30 September 2020 Readers are cautioned not to rely unnecessarily on these forward-looking statements. The forward-looking statements are made on the date hereof, and PLUG undertakes no obligation to update such statements due to new information.
SOURCE: STOPMAG
Media contact
Ian Martorana
The Bulls Group
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