[Asia Economy Reporter Kwon Jae-hee] Cosmetic manufacturer Kolmar Korea is showing strong performance in early trading on the 14th following news of its acquisition of cosmetic container manufacturer Yeonwoo.
As of 9:57 AM, Kolmar Korea is trading at 47,550 KRW, up 1.49% compared to the previous trading day.
During the session, Kolmar Korea's stock price rose as much as 3.94% to 49,500 KRW compared to the previous trading day.
At the same time, Kolmar Korea Holdings is trading at 22,900 KRW, up 3.62% from the previous trading day. Kolmar Korea Holdings also saw its price rise as much as 8.40% to 25,000 KRW during the session before giving up some of the gains.
Kolmar Korea announced yesterday that it will acquire 55.0% of Yeonwoo's shares for 286,383,800,000 KRW. The scheduled acquisition date is June 30.
Kolmar Korea explained the purpose of the acquisition as "expanding the cosmetic business value chain and creating synergy."
Yeonwoo, listed on KOSDAQ, is a specialist in cosmetic pumps and containers, recording consolidated sales of 287.1 billion KRW and operating profit of 29.9 billion KRW last year.
Hanuri, a researcher at Meritz Securities, said, "Diversification of product lines and clients will enable expansion of the base, and cost reduction is expected through regional procurement of raw and subsidiary materials," adding, "I consider Kolmar Korea the top pick in the industry."
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