Samsung gets $191 million profit valuation from investment in Rainbow Robotics

Samsung Electronics Co. is found to have earned 250 billion won ($191 million) in profit valuation from its investment made two months ago in Rainbow Robotics, a company specializing in collaborative robots and humanoids.

The valuation is based on news of the electronics giant's takeover of Rainbow Robotics and the growth potential of the collaborative robot market.

The Financial Supervisory Service of Korea on Sunday said Samsung Electronics as of Wednesday owned 2,854,136 shares, or 14.99%, of Rainbow Robotics, which is listed on the country's main stock market Kospi.

On Jan. 2, Samsung Electronics participated in the robotics company's paid-in capital increase allocated to third parties to secure 1,940,200 shares, or 10.22%, at 30,400 won each and bought another 913,936 shares at the same price on Wednesday through an over-the-counter transaction.

Samsung Electronics has invested a combined 86.7 billion won in the robotics company. Its stake is now worth 344.4 billion won, however, because Rainbow Robotics' share price soared from 34,450 won at the end of last year to 120,700 won based on the closing price on Friday with news of Samsung Electronics' acquisition.

The profit evaluation in two months is 257.7 billion won. A simple comparison is difficult but the amount is close to the operating profit of 270 billion won earned by Samsung Electronics' semiconductor division in the fourth quarter last year.

Analysts attribute the share's growth to news of Samsung Electronics' call option, or the right to purchase stocks at a pre-determined price at a specific time, and the potential for the acquisition.

The rapid growth of the market for collaborative robots, or gadgets that can physically interact with people while working in the same space and the flagship products of Rainbow Robotics, are also considered factors behind the stock's rise.

Write to Jeong-Soo Hwang at hjs@hankyung.com