Investors Temasek Holdings, Seatown Holdings and RRJ Capital Master are pouring $150 million into Clean Energy Fuels Corp., a North American natural gas fuels provider, Reuters reported. The investment, in the form of 7.5 percent notes that can be converted into Clean Energy shares at $15 apiece, is expected to close by the end of August, Reuters said.
(Reuters) – Clean Energy Fuels Corp said three investment companies will pump $150 million in the largest North American natural gas fuels provider, a month after Chesapeake Energy pledged a similar amount to help expand Clean Energy’s infrastructure.
Shares of the company rose 3 percent to $13.22 in pre-market trade, after closing at $12.83 Wednesday on Nasdaq.
The investment from arms of Temasek Holdings , Seatown Holdings and RRJ Capital Master — run by Asian investor Richard Ong — comes as companies eye technologies to replace gasoline and diesel with cheaper natural gas fuels.
“We see this commitment by these major global investors as being very beneficial to increasing the demand for natural gas in North America…,” Chesapeake CEO Aubrey McClendon said.
The investment, in the form of 7.5 percent notes that can be converted into Clean Energy shares at $15 apiece, is expected to close by the end of August.
Seal Beach, California-based Clean Energy intends to use the proceeds to develop, construct and run liquefied natural gas and compressed natural gas fueling stations.
Incorporated as Pickens Fuel Corp in 1997 and reincorporated as Clean Energy four years later, Clean Energy owns, operates or supplies to about 224 gas fueling stations from British Columbia to the Mexican border. (Reporting by Sumit Jha in Bangalore; Editing by Saumyadeb Chakrabarty)