Amazon gains right to buy $340 million in Generac shares
Amazon has received warrants to purchase up to $340 million worth of shares in backup generator manufacturer Generac as part of an agreement to supply equipment for data centers. After the agreement was announced, Generac shares rose by more than 40% in after-hours trading on Wednesday, CNBC Top News reports.
Warrant terms
As Generac stated in a securities filing, the company issued Amazon warrants to buy up to 1.69 million shares at a price of $200.93 per share. According to the document, the total potential value of the investment under this agreement could reach $8 billion.
More current news is available on the UA.News Telegram channel Telegram.
The warrants represent nearly 3% of Generac's outstanding shares. As of the close of trading on Wednesday, the company's market capitalization stood at about $10.3 billion.
Generator supplies
Generac will supply Amazon with backup electric generators for its data centers. The company's filing states that initial deliveries in 2027 and 2028 are expected to total $2.4 billion.
