LG Electronics Inc. (KOSE:A066570) signed a contract to acquire 12.54% stake in Robostar Co., Ltd. (KOSDAQ:A090360) from Jungho Kim and Guiduk Kang for KRW 25.8 billion on May 29, 2018. Under the terms, LG Electronics Inc will acquire 0.98 million shares at KRW 0.03 million per share and the consideration will be paid on July 17, 2018. Jungho Kim and Guiduk Kang are selling 0.88 million shares and 0.1 million shares respectively in Robostar Co., Ltd. Post-acquisition, Jungho Kim will reduce the shareholding from 0.98 million shares (12.54%) to 0.1 million shares (1.25%) and Guiduk Kang will reduce the shareholding from 0.61 million shares (7.9%) to 0.52 million shares (6.63%) in Robostar Co., Ltd. LG Electronics Inc will acquire an additional 0.3 million shares in December 2019. Post completion, LG Electronics Inc. will hold 16.75% stake in Robostar Co., Ltd. In a related transaction, LG Electronics Inc will acquire 1.9 million new shares of Robostar Co., Ltd. LG Electronics Inc will fund the transaction through its internal reserved cash. On July 17, 2018, at the extraordinary meeting of shareholders of Robostar Co., Ltd, new director will be appointed and the management rights will be transferred. The transaction is expected to be completed on July 17, 2018. Ernst & Young acted as financial advisor to LG Electronics Inc.

LG Electronics Inc. (KOSE:A066570) completed the acquisition of 12.54% stake in Robostar Co., Ltd. (KOSDAQ:A090360) from Jungho Kim and Guiduk Kang on July 17, 2018.