Plug Power To Get $217 M Cash Investment
 

04/13/2006

Source: LOHAS Weekly Newsletter

Author: Reuters

Plug Power Inc. on Tuesday said a Russian joint venture agreed to make a $217 million cash investment in the company, sending the fuel cell maker's shares up more than 30 percent in morning trade.

 

The investment will be made through Smart Hydrogen, a joint venture between Russian investment firm Interros and metals company Norilsk Nickel, Plug Power said in a news release.

 

 

Plug Power would receive cash in exchange for shares of Class B capital stock that are convertible into 39.5 million common shares. The purchase price per common share, on an as-converted basis, is $5.50, it said.

 

 

After the investment closes, Plug Power will have about $285 million in cash and marketable securities. The deal is expected to close this summer, it said.

 

 

In December 2005, the investors bought about 2.7 million shares of Plug Power common stock from General Electric Co. <GE.N>.

 

 

Concurrent with the closing of the new investment, the investors are expected to buy 1.825 million shares of Plug Power common stock from DTE Energy Foundation, it said.

 

 

After the investment transactions close, on a combined basis, the investors are expected to hold about 35 percent of Plug Power's outstanding common stock on an as-converted basis, it said.