(Reuters) – South Korea-based conglomerate SK Group will take a 9.9% stake in hydrogen fuel cell manufacturer Plug Power Inc. and form a joint venture to help deliver hydrogen fuel cell products to Asian markets, the companies said.
As part of the deal, a US entity of SK Group will acquire approximately 51.4 million shares of Latham, New York-based Plug Power, at a price of $ 29.2893 per share.
Shares of Plug Power in Extended Power were up by 20% on Wednesday after closing a 7% firmer.
The agreement comes at a time of sharp demand for clean energy, signaling a gradual shift from polluting fossil fuels in the coming years.
In 2019 the Government of South Korea announced the Hydrogen Economy Roadmap through 2040, with ambitious targets including 5MM tons of hydrogen per year, and the cumulative economic value of its hydrogen economy reaching ~ $ 40 billion by 2040 have hope.
If a deal occurs, SK Group-Plug Power Invest is expected to close in the first quarter of 2021.
Morgan Stanley & Co. LLC acted as financial advisor and Goodwin Proctor LLP acted as legal advisor for Plug Power.
Reporting by the Arundhati Government in Bengaluru; Editing by Amy Caren Daniel and Sherry Jacob-Phillips