Plug Power Inc. (NASDAQ: PLUG) is a leading provider of hydrogen fuel cells and hydrogen fueling systems for enabling electric mobility, and SK Group, one of South Korea’s most prominent business groups.
3 Tiny Stocks Primed to Explode The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.
We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.
Click here for full details and to join for free
Plug Power Inc. (NASDAQ: PLUG) shares soared 27.43% in the after-hours session to $44.6 after the announcement that Plug Power and the SK Group will forge a strategic partnership to promote hydrogen as an alternative energy source in Asian markets. The collaboration between companies will provide hydrogen fuel cell systems, hydrogen fueling stations, and electrolyzers to the Korean market and broader Asian market. SK Group and Plug Power have also signed a definitive agreement under which SK Group will make a strategic investment of $1.5 billion in Plug Power to support the rapidly growing Asia market and are planning the establishment of a joint venture company in South Korea. With SK Group’s significant presence and leadership throughout Asia’s energy industry and Plug Power’s leadership in hydrogen fuel cells, fueling stations, and green hydrogen generation, the two companies represent a formidable team to accelerate the growth of the hydrogen economy in Asian markets.
South Korea announced its Hydrogen Economic Roadmap for 2040 in January 2019, with ambitious goals, including selling over 5MM tons of hydrogen annually, producing over 6MM fuel cell electric vehicles, installing 1,200 fuel cell refueling stations, and producing over 15GW of fuel cell power by 2040. Plug Power has demonstrated what it takes to scale a hydrogen business in North America as a global leader in the hydrogen economy.
Terms of the Deal
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 common stock at $29.2893 per share, the 30-day VWAP as of January 5th, 2021, at a zero percent discount. The investment is expected to represent an approximate 9.9% pro forma ownership stake in Plug Power.
The investment transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the first quarter of 2021.