South Korea’s SK Group to buy 10% in US-based fuel cell maker Plug Power for $1.5b

The logo of SK Innovation is seen in front of its headquarters in Seoul, South Korea. REUTERS/Kim Hong-Ji

South Korea-based conglomerate SK Group will take a 9.9% stake worth $1.5 billion in hydrogen fuel cell maker Plug Power Inc and form a joint venture to help provide hydrogen fuel cell products to Asian markets, the companies said.

As part of deal, a US unit of SK Group will acquire about 51.4 million shares of Latham, New York-based Plug Power at a price of $29.2893 per share.

Plug Power shares were up 20% in extended trading on Wednesday after closing 7% firmer.

The agreement comes at a time of brisk demand for clean energy, signaling a gradual shift from polluting fossil fuels in the coming years.

The South Korea government in 2019 announced the Hydrogen Economy Roadmap through 2040, with ambitious goals, including over 5MM tons of hydrogen per year, and expects the cumulative economic value of its hydrogen economy to reach ~$40 billion by 2040.

If a deal comes through, the SK Group-Plug Power investment is expected to close in the first quarter of 2021.

Morgan Stanley & Co. LLC served as the financial adviser and Goodwin Procter LLP acted as legal adviser to Plug Power.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.