LIG Nex1 shares rallied Monday as traders cheered the South Korean defense company’s plan to acquire U.S. military-robot maker Ghost Robotics.
Shares of LIG Nex1
which specializes in making guided missiles, were up 30% at 127,700 won ($96.90) in pre-market trading and then hovered around 20% higher, on track for their sharpest daily percentage gain since the company’s 2015 listing, according to FactSet. The benchmark Kospi was last up 0.1%.
LIG Nex1 said in a regulatory filing late Friday that it will pair up with a Korean private equity fund to buy a 60% stake in Ghost Robotics for $240 million.
The company said it would complete the acquisition by June 30, 2024.
Seoul-based DB Financial Investment said in a research note Monday that LIG Nex1’s planned acquisition has boosted investors’ expectations for its entry into the U.S. defense market.
Ghost Robotics’ “Vision 60” four-legged robots have been deployed at U.S. air bases in Florida and Nevada, and are also supplied to the U.K. military, DB said.
DB raised its target price for LIG Nex1 by 3.7% to KRW140,000 and maintained a buy rating on the stock.