(Reuters) – South Korea’s conglomerate SK Group will acquire a $ 1.5 billion stake in $ 1.5 billion in hydrogen fuel cell maker Plug Power Inc. and form a joint venture to help with the supply of hydrogen fuel cell products to Asian markets.
As part of the deal, a U.S. unit of SK Group will acquire approximately 51.4 million shares in Plug Power in New York, Latham, at a price of $ 29.2893 per share.
Plug Power 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, indicating a gradual shift in fossil fuel pollution in the coming years.
The Government of South Korea announced the Water Map Economy Roadmap to 2040 in 2019, with ambitious targets, including more than 5 MM tons of hydrogen per year, and expects the cumulative economic value of its hydrogen economy to reach ~ 40 billion dollars by 2040.
If an agreement succeeds, the SK Group-Plug Power investment is expected to close in the first quarter of 2021.
Morgan Stanley & Co. LLC served as financial advisor and Goodwin Procter LLP acted as legal counsel for Plug Power.
Reporting by Arundhati Sarkar in Bengaluru; Edited by Amy Caren Daniel and Sherry Jacob-Phillips