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Implications of Ghost Robotics acquisition

LIG Nex1 to acquire US robotics company Ghost Robotics

On Dec. 8, LIG Nex1 announced that it plans to acquire a 60% stake in Ghost Robotics (GRC), a US maker of unmanned quadruped vehicles. To that end, LIG Nex1 and Korea Investment Private Equity (Korea Investment PE) will jointly invest in a special purpose company in the US called LNGR. The deal (valued at W315bn) is expected to close by Jun. 30, 2024.

Implications of GRC acquisition: Expansion into the US defense market and securing of a robotics platform

LIG Nex1’s acquisition of GRC is significant, as it will allow the firm to expand into the US defense market and secure a robotics platform. Although the move is unlikely to have a significant effect on short-term fundamentals, it should help remove the stock’s valuation discount, leading to a re-rating. That said, we note that there are still questions about GRC’s financial results (which are not available) and fair valuation.









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