[Featured Stock] VT Rises on Acquisition of Ridleshot Manufacturer

Beauty product development specialist VT is showing strong performance in early trading on the 23rd following news of its acquisition of the Ridleshot manufacturer.

As of 9:22 AM, VT is trading on the KOSDAQ market at 39,150 KRW, up 1,250 KRW (3.30%) from the previous close.

The trading volume is 980,000 shares, with a trading value of approximately 38.5 billion KRW.

After a sharp rise at the start, some of the gains were given back due to early profit-taking. During the session, the stock price surged to a high of 39,850 KRW, approaching the 52-week high of 40,000 KRW.

VT announced through a disclosure that it will acquire a 50.27% stake in E&C, the producer of Ridleshot. VT will incorporate E&C as a consolidated subsidiary by using 27.53% of its Cube Entertainment shares and some cash. Although VT’s stake will decrease from 37.59% to 10.06% after selling shares to Cube Entertainment CEO Kang Seung-gon, it is expected that there will be little change in consolidated operating profit.

The main purpose of this acquisition is to establish a stable production line and enhance security through vertical integration of Ridleshot-related product manufacturing. VT plans to acquire an additional 80% stake in VT Cube Japan by the third quarter to fully make it a subsidiary. Through this, VT aims to vertically integrate its cosmetics-related companies.