[Special Stock] Yeonwoo Surges Over 20% Intraday on News of Acquiring Korea Kolmar

Published 14 Apr.2022 09:08(KST)

[Asia Economy Reporter Minji Lee] Yeonwoo, a company specializing in cosmetics packaging, is experiencing a sharp surge in stock prices. This is analyzed to be due to the news that Kolmar Korea is acquiring the company.

At 9:06 AM on the 14th, Yeonwoo was traded at 34,300 KRW, up 21.20% from the previous trading day. During the day, the stock price soared to as high as 34,750 KRW.

Kolmar Korea announced the previous day that it would acquire 55% of Yeonwoo's shares for 286.3838 billion KRW. Kolmar Korea, a leading domestic cosmetics original design manufacturer (ODM), plans to create synergy in its cosmetics business by acquiring a cosmetics container company. In the cosmetics business, containers such as packaging account for as much as 30% of the cost. If Kolmar Korea, after merging with Yeonwoo, produces cosmetics containers directly, it can reduce costs accordingly.