Linc Energy Ltd. announced that it has exercised its option to acquire 10% of AFC Energy, a UK-based hydrogen fuel cell company focused on the development and construction of low cost hydrogen fuel cells for the cleanest power generation.
Linc Energy has invested GBP2.97 million to acquire 10% of AFC Energy at a discount of 7.5% to the 30 day VWAP, equaling an exercise price of 17.72 pence per share, which represents a discount of approximately 45% to AFC’s closing share price of 32.25 pence on 13 October 2010.
By exercising its option to acquire an interest in AFC Energy, Linc Energy has secured the perpetual global rights to the combined application of AFC’s fuel cell technology and its Underground Coal Gasification (UCG) process. This deal also provides Linc Energy with exclusive rights to the application of AFC’s fuel cell technology in combination with any other industrial process within Australia.
Ian Balchin, Chief Executive Officer of AFC said, "We are delighted that Linc Energy has exercised its option and we look forward to working closely with them to integrate our technologies to enable the cleanest, low cost power generation from UCG."
Linc Energy views the purchase of the AFC stock as a way to support the commercialization of AFC’s fuel cell technology in a meaningful way, whilst also gaining the advantage of direct ownership and participation in management.
Linc Energy Chief Executive Officer Peter Bond said, "The key reason for taking a strategic position in AFC Energy is to secure a long-term exclusive agreement for the development of smart, low cost hydrogen fuel cells for power generation from UCG. Linc Energy’s UCG process can produce enormous volumes of inexpensive hydrogen. Our investment in AFC reiterates the clear synergy between the technologies and our commitment to the commercialisation of UCG to hydrogen fuel cell power generation."
