SK to recover 300,000 won in half a year
Secured 9.9% stake on the 7th as the largest shareholder
Plug power surges by 130% in 5 days
Renault and European hydrogen car joint’Hojae’
“SK will accelerate the expansion of hydrogen business”
SK(296,500 +5.33%)The stock price is approaching 300,000 won. This is the impact of a 130% increase in the share price of Plug Power, an American hydrogen company invested by the company. Accordingly, the value of SK Holdings’ stake increased by over 2 trillion won. SK has succeeded in establishing itself as an affiliate by acquiring SK Materials and SK Siltron. It is evaluated that the investment capability in the hydrogen business was demonstrated through this plug power investment.
○ Soaring on news of the establishment of a joint venture with Renault
On the 13th, SK Corp. ended at 296,000 won, up 5.33% in the securities market. This year alone, it has risen by more than 25%, and for the first time since the end of June last year, it will be in front of the 300,000 won range.
The previous day, the plug power surged 22.33% in the US NASDAQ market, which had an impact. On the 7th, SK Co., Ltd. and SK E&S invested a total of 1.6 trillion won (about 1.5 billion dollars) to secure a 9.9% stake in Plug Power, becoming the largest shareholder. SK E&S is a subsidiary of SK Corp. (90% stake). Less than a week after the acquisition of the stake, the value of the stake surged.
After SK Corp. announced its investment, Plug Power’s stock price surged every day. It closed at $66 the day before, up 127.6% from SK’s acquisition price per share ($29). Plug Power’s market cap, which was about 16 trillion won as of the end of last year, has grown to 34 trillion won.
Market expectations have risen as Plug Power announced that it will establish a joint venture with Renault Group in France to target the small and medium-sized hydrogen commercial vehicle market in Europe. The joint ventures of the two companies are planning to build a hydrogen fuel cell system and a state-of-the-art hydrogen vehicle production line in France to target the European commercial vehicle market. Plug Power possesses key technologies such as vehicle fuel cell (PEMFC) in the hydrogen business value chain (value chain), electrolyzer, which is a key facility for water electrolysis, liquefied hydrogen plant, and hydrogen charging station construction. It also exclusively supplies hydrogen forklifts to distribution companies such as Amazon and Wal-Mart.
SK Corp. is being evaluated as having laid a foothold for expanding the hydrogen business with this investment. In particular, it is expected that the related business will accelerate in that it chose a hydrogen company as the first large-scale investment destination this year.
Plug Power has been offered to establish equity investments and joint ventures (JVs) from several domestic and foreign companies, but all refused. However, it is known that SK Corp.’s energy business capability and broad network in the Asian market were highly appreciated, and even management participation was accepted. Global investment banks (IBs) such as Morgan Stanley Barclays said, “SK Co., Ltd. and Plug Power are the best strategic partners that can create high synergy, and we will lead the Asian hydrogen market through cooperation between the two companies.”
SK Group is targeting the Chinese hydrogen market using SK E&S’s liquefied natural gas (LNG) infrastructure and plug power technology in China, and also with Vingroup, Vietnam’s largest private company owned by SK Co., Ltd. It is planning to dominate the Asian hydrogen market by cooperating in the field of hydrogen power generation.
Hyung-wook Choo, president of SK E&S and head of SK hydrogen business promotion manager, said, “If SK Group’s hydrogen supply capability and plug power’s technology in the field of hydrogen liquefaction, transportation, and charging are combined, a stable hydrogen value chain (value chain) can be achieved.” Based on the experience of growing SK E&S, a domestic city gas company, into a global LNG company, we will continue the success story of the hydrogen business.”
Reporter Mansoo Choi [email protected]
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