Rainbow Robotics' stock showed strength in early trading on the 2nd following news that it would join Samsung Electronics as a subsidiary.
As of 10:24 a.m. that day, Rainbow Robotics was trading at 211,500 won, up 48,800 won (29.99%) from the previous trading day. Shortly after the market opened, Rainbow Robotics headed straight for the upper limit price.
Investment has surged following the news that Samsung Electronics will become the largest shareholder of Rainbow Robotics, a leading domestic robotics firm. On Dec. 31, Samsung Electronics announced that it would exercise its call options on shares of Rainbow Robotics that it holds.
Samsung Electronics' existing equity stake in Rainbow Robotics was 14.7%, but after the completion of the transaction related to the call option exercise in February, the stake will increase to 35%. Rainbow Robotics is expected to be included as a subsidiary in Samsung Electronics' consolidated financial statements.
Samsung Electronics also holds additional call options, indicating the possibility of further expanding its equity stake. If Samsung Electronics exercises its call options on the 4.58 million shares held by the largest shareholder of Rainbow Robotics and related parties, its ownership stake could rise to around 59%. The expiration date for the call options is reported to be in February 2029.