South Korean defense company LIG Nex1 is set to acquire the U.S. military-robot maker Ghost Robotics, fueling positive market sentiment and driving a rally in LIG Nex1 shares. The stock surged 30% to 127,700 won ($96.90) during pre-market trading, with the company on track for its largest daily percentage gain since its listing in 2015. The benchmark Kospi also experienced a slight increase of 0.1%.
In a regulatory filing released on Friday, LIG Nex1 announced its plan to purchase a 60% stake in Ghost Robotics for $240 million. The acquisition is expected to be completed by June 30, 2024, and has garnered excitement among investors, particularly surrounding LIG Nex1’s entrance into the U.S. defense market.
Ghost Robotics’ flagship product, the “Vision 60” four-legged robot, has already been deployed at U.S. air bases in Florida and Nevada, as well as being supplied to the U.K. military. This successful track record has further reinforced positive sentiment towards LIG Nex1’s future prospects.
DB Financial Investment, based in Seoul, released a research note on Monday raising its target price for LIG Nex1 by 3.7% to KRW140,000. They also maintained a buy rating on the stock, highlighting the potential for growth that the acquisition presents.