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| Samsung Electronics headquarters in Seoul / Korea Times file |
By Kim Hyun-bin
Samsung Electronics has been seeking to conduct large-scale buyouts for years and the company's recent purchase of shares in Rainbow Robotics, a robot development company, is drawing attention, according to industry officials, Monday.
Samsung Electronics virtually stopped its corporate acquisitions after acquiring Harman, a U.S. automotive electronics maker, in 2017 for 9 trillion won ($6.88 billion).
According to the Financial Supervisory Service (FSS), Samsung Electronics purchased 913,936 common shares of Rainbow Robotics over the counter on March 15 at 30,400 won per share. In January this year, the company bought a 10.22 percent stake in Rainbow Robotics for 59 billion won, and more recently it acquired an additional 27.8 billion won to secure a total 14.99 percent stake.
Samsung Electronics signed a call option contract with Rainbow Robotics, and all eyes are watching if it will acquire the robotics company in the future.
Samsung Electronics can become the largest shareholder of Rainbow Robotics depending on the volume of call options exercised up to 59.94 percent of the company.
In addition, Rainbow Robotics will raise an agenda to newly appoint Samsung Electronics Corporate Executive Vice President Yoon Juno, who led the transaction, as a non-executive director in a shareholders' meeting at the end of this month.
Samsung Electronics is fostering the robot business as a new growth engine. It also announced plans to release EX1, a robot specialized for helping senior citizens with exercise, this year.
There are observations that the acquisition of a stake in Rainbow Robotics, which has multi-legged robot platform technology, could be a signal for Samsung Electronics to resume its M&A activities.
"Depending on performance such as technological cooperation, it is judged that even M&As were considered," Yang Seung-yoon, a researcher at Eugene Investment & Securities, said regarding Samsung Electronics' purchase of Rainbow Robotics shares.
"Although the specific background of the investment has not been disclosed, it is estimated that the main drivers are the promotion of automation within Samsung Group using collaborative robots owned by Rainbow Robotics and the development of robot products through technological cooperation between the two companies."
Samsung Electronics has emphasized its commitment to M&As to discover future growth engines and strengthen competitiveness.
Han Jong-hee, vice chairman and CEO of Samsung Electronics, said at a press conference for CES 2023 at the beginning of the year, "Please know that Samsung is working hard to conduct mergers and acquisitions."
Samsung has been seeking to conduct M&As in the past after Harman in 2017 but encountered difficulties closing deals.
"Samsung has been seeking to conduct M&As but it fell through over the years. Samsung has one of the best M&A experts and when it comes close to acquiring a prospective firm many of the times it was leaked to other companies which ended up taking over the firm or jacking up the price making it unattractive for Samsung to take over," an industry official familiar with the matter said.
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