Plug Power (NASDAQ:PLUG) stock is on the rise Thursday after announcing a massive deal with Korean business company SK Group.
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The deal between the two companies has them forming a partnership with the goal of speeding up the switch to hydrogen as an alternative energy source in Asian countries. This will have them providing â€œhydrogen fuel cell systems, hydrogen fueling stations, and electrolyzers to the Korean and broader Asian markets.â€
To go along with this positive news for PLUG stock, the two companies will also be forming a joint venture company based in South Korea. This company will support the hydrogen energy efforts in the region.
The Plug Power news release also reveals a $1.5 billion investment in the company from SK Group. This will have a wholly-owned subsidiary of SK Group obtaining 51.4 million shares of PLUG stock. It will pay a price of $29.2893 each for these shares. That will give it a 9.9% stake in the company. The investment is expected to close in the first quarter of 2021.
Andy Marsh, CEO for Plug Power, said the following about the news.
â€œSK Group has an established strategy for building out the hydrogen economy in South Korea and beyond. The current relationship with SK Group offers immediate strategic benefits to Plug Power to accelerate its expansion into Asian markets â€“ and is intended to result in a formal joint venture (JV) by 2022.â€
PLUG stock was up 29.9% as of Thursday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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