Plug Power Inc. has successfully completed the previously announced deal with Interros, a major Russian investment firm, and Norilsk Nickel, the world’s largest producer of nickel and palladium, for a $217 million cash investment in the company. The investment is being made through Smart Hydrogen, a joint venture of the principal Interros investors and Norilsk Nickel, which was formed to participate in the global hydrogen economy.
“We are extremely pleased to officially begin our relationship with Interros and Norilsk Nickel,” said Dr. Roger Saillant, chief executive officer and president of Plug Power. “We now have approximately $285 million in cash and marketable securities, increased access to the Russian market and a wealth of technical expertise from our new partners. Together with our already strong market position and product line, the outlook for Plug Power has never been better.”
Plug Power has received cash of approximately $217 million in exchange for shares of Class B Capital Stock that are convertible into 39.5 million shares of common stock. The purchase price per share of common stock in the transaction, on an as-converted basis, is $5.50. In December 2005, the investors purchased approximately 2.7 million shares of Plug Power common stock from General Electric. Concurrent with the closing of the new investment, the investors purchased 1.825 million shares of Plug Power common stock from DTE Energy Foundation. In aggregate, the investors now hold approximately 35 percent of Plug Power’s outstanding common stock on an as-converted basis.
The parties intend to explore opportunities for Interros and Norilsk Nickel to add value to Plug Power, specifically in the areas of technology development and market access. A team from Plug Power recently spent a week in Russia at an exclusive symposium, in which key counterparts from Interros, Norilsk Nickel, and affiliated technology organizations, including representatives from the Russian Academy of Sciences, provided an overview of their vast capabilities in hydrogen and fuel cell technologies. Coincident with the symposium, Plug Power shipped two GenCore and two GenSys systems for display at the symposium and at the World Economic Forum in St. Petersburg, which was attended by Russia’s president, Vladimir Putin.
As part of the transaction, the investors have the right to appoint four of the company’s 11 board members and have to date appointed three of the directors: Sergey Polikarpov, director of Smart Hydrogen; Sergey Batekhin, managing director of Interros; and Joel Gross, Independent Consultant to the telecommunications industry. The Company expects the investors to appoint the fourth director within the next several weeks.
Plug Power is advised by Stephens Inc. as financial advisor and Goodwin Procter LLP as legal counsel. Interros and Norilsk Nickel are advised by Citigroup Inc. as financial advisor and Baker Botts LLP as legal counsel.
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