SK Group’s $1.5 Billion Strategic Investment in Plug Power

SK Group's $1.5 Billion Strategic Investment in Plug Power

Goodwin Procter LLP advised Plug Power Inc. on the deal, while Simpson Thacher advised SK Holdings Co.

Plug Power Inc. (NASDAQ: PLUG) announced its strategic partnership and related investment with South Korea-based SK Group. SK will make a $1.5 billion equity investment in Plug Power which is expected to result in an approximately 9.9% pro forma ownership stake. As part of the partnership, the companies will work together exclusively to establish a joint venture in South Korea to accelerate the growth of the hydrogen economy across Asia.

A representative of SK will join Plug Power’s board of directors upon the closing of the investment transaction. The investment is subject to customary closing conditions and regulatory approvals and is expected to close in the first quarter of 2021.

The transaction represents the largest U.S. clean energy PIPE in the last 20 years.

Plug Power is building the hydrogen economy as the leading provider of comprehensive hydrogen fuel cell turnkey solutions. The company’s innovative technology powers electric motors with hydrogen fuel cells amid an ongoing paradigm shift in the power, energy, and transportation industries to address climate change and energy security, while meeting sustainability goals. Plug Power created the first commercially viable market for hydrogen fuel cell technology.

The Goodwin team was led by Robert Whalen (Picture) and included James Matarese and Audrey Leigh, Greg Saiontz, Nicole Daley and Patty Shields with assistance from Richard Matheny, Amy Josselyn, Carrie Miller, Paul Jin and Matt Wheatley.

The Simpson Thacher team for the transaction included Jin Hyuk Park, Joongwon Park and Chanik Park (Corporate – Hong Kong); Jean Park (Corporate – New York); Peter Guryan and Kelly Karapetyan (Antitrust); Mick Tuesley and Mark Skerry (CFIUS); Sophie Staples and Eli Shalam (Tax); Amber Harezlak (IP); and Jeanne Annarumma (ERISA).

Involved fees earner: Nicole Daley – Goodwin Procter; Paul Jin – Goodwin Procter; Amy Josselyn – Goodwin Procter; Audrey Leigh – Goodwin Procter; James Matarese – Goodwin Procter; Richard Matheny III – Goodwin Procter; Gregory Saiontz – Goodwin Procter; Patty Shields – Goodwin Procter; Robert Whalen – Goodwin Procter; Matthew Wheatley – Goodwin Procter; Jeanne Annarumma – Simpson Thacher & Bartlett; Peter Guryan – Simpson Thacher & Bartlett; Amber Harezlak – Simpson Thacher & Bartlett; Kelly Karapetyan – Simpson Thacher & Bartlett; Jin Hyuk Park – Simpson Thacher & Bartlett; Joongwon Park – Simpson Thacher & Bartlett; Chanik Park – Simpson Thacher & Bartlett; Jean Park – Simpson Thacher & Bartlett; Eli Shalam – Simpson Thacher & Bartlett; Mark Skerry – Simpson Thacher & Bartlett; Sophie Staples – Simpson Thacher & Bartlett; Malcolm Tuesley – Simpson Thacher & Bartlett;

Law Firms: Goodwin Procter; Simpson Thacher & Bartlett;

Clients: Plug Power; SK Holdings;

Author: Ambrogio Visconti