LIG Nex1 shares gain over Ghost Robotics acquisition reports

[Courtesy of LIG Nex1]

Shares of South Korea’s aerospace manufacturer LIG Nex1 Co. are surging in early trading on Monday upon reports that it will acquire a United States robotics company.

LIG Nex1 traded at 122,700 won ($93.2) in the Kospi market on Monday at 9:05 a.m., up 24.44 percent from the previous trading day.

LIG Nex1 said after market close on Friday that it will acquire a 60 percent stake in robotics company Ghost Robotics LLC for 315 billion won. The U.S company is the manufacturer behind the robotic dogs used to guard the presidential office at Yongsan Park.

“By acquiring a 60 percent stake in Ghost Robotics, we aim to secure a future growth platform and expand our presence in the U.S. defense market,” LIG Nex1 said in a statement.

DB Financial Investment Co. analyst Seo Jae-ho raised the company’s target price to 140,000 won from 135,000 won, saying, “Its acquisition of Ghost Robotics will boost expectations for a U.S. market entry and add synergies in the defense sector.”