Robostar’s stock seesaws on reports of LG’s stake acquisition
[THE INVESTOR] Industrial robot maker Robostar’s stock was on a roller-coaster ride in early morning trading on May 30 after tech giant LG Electronics announced a day earlier that it would acquire a 20 percent stake.
The stock jumped 24.14 percent to 45,000 won (US$41.63) right after the market opened in the morning, but dropped to a low of 31,750 won in afternoon trading. It closed at 32,400, down 10.62 percent.
LG said on May 29 that it would invest 53.6 billion won to purchase 1.95 million common stocks in July when Robostar issues new shares. The tech behemoth will also take over a 13.4 percent stake held by the executives of the robot maker by the end of next year.
Founded in 1999, Robostar boasts cutting-edge technical capabilities in the industrial robot segment. It rolls outs robotic arms for assembly lines in automotive, display and chip segments.
The robot maker posted 2.9 billion won in operating profit in the first three months with its sales standing at 47.7 billion won. LG Vice Chairman Cho Seong-jin said earlier this year that the electronics firm would try to produce robotic products in a bid to expand its foothold in the sector.
“The company will try to target the domestic and industrial robot segments,” Cho said during the CES electronics show held in Las Vegas in January.
The firm invested some 1 billion won in artificial intelligence startup Acryl, which specializes in developing emotion recognition solutions, earlier this month, and bought a 10 percent stake in robot solution developer Robotis.
By Kim Young-won (email@example.com)