The share price of Jayjun Cosmetic, a cosmetics manufacturer, is hitting the upper price limit for the second straight day. Buying is seen as pouring in on news that CHA Biotech's affiliate CHA HealthCare will acquire Jayjun Cosmetic.
As of 9:24 a.m. on the 1st, Jayjun Cosmetic was trading on the main bourse at 15,220 won, up 3,510 won (29.97%) from the previous session. The stock has hit the upper price limit for two consecutive days, climbing from the 9,000-won range to the 15,000-won range.
Investor sentiment is seen to have improved after reports the previous day that CHA HealthCare, an affiliate of CHA Biotech, will become the new largest shareholder by participating in Jayjun Cosmetic's rights offering.
Other affiliates besides CHA HealthCare are also expected to join this acquisition race, and they are said to purchase equity at about 30,000 won per share, including a management control premium.(☞[Exclusive] CHA Biotech to acquire Jayjun Cosmetic... owner changes again after 4 months)