Plug Power To Receive $1.5 Bln Investment From SK Group; Stock Surges

(RTTNews) - Plug Power Inc. (PLUG) and South Korea-based conglomerate SK Group plan to form a partnership to accelerate hydrogen as an alternative energy source in Asian markets. SK Group will invest $1.5 billion in Plug Power, the U.S. hydrogen fuel cell maker said in a statement.

PLUG closed Wednesday regular trading at $35.00, up $2.45 or 7.53 percent. In the after-hours trading, the stock further gained $9.60 or 27.43 percent.

Under the partnership, Plug Power and SK Group plan to provide hydrogen fuel cell systems, hydrogen fueling stations, and electrolyzers to the Korean and broader Asian markets.

As per the terms of the investment, a US subsidiary of SK Group will make a $1.5 billion investment in Plug Power by acquiring about 51.4 million shares of common stock at a price of $29.2893 per share. The investment is expected to represent an about 9.9% pro forma ownership stake in Plug Power.

The investment transaction is expected to close in the first quarter of 2021.

In January 2019, the South Korea government announced the Hydrogen Economy Roadmap through 2040, with ambitious goals, including over 5MM tons of hydrogen per year, over 6MM fuel cell EVs, 1,200 refilling stations and 15 GW of fuel cell power generation, and expects the cumulative economic value of its hydrogen economy to reach about $40 billion by 2040.