LG Household share prices jump due to acquisition rumours

By staff reporter

- Last updated on GMT

Related tags South korea Korea

Rumours that the Korean consumer goods company is planning a takeover of the country’s third largest cosmetics manufacturer has caused its share prices to rise.

Korean newspaper, the Korea Economic Daily, reported that LG Household and Health was looking at acquiring The Face Shop, which caused share prices to rise by over 10 percent according to press reports.

The reported value of the deal was approximately 400bn South Korean Won (KRW) ($347m).

LG Household holds brands such as O Hui, Isa Knox and Lac Vert and offers skin care, body care and make up products as well as having a range for men.

The company also offers oral care, laundry and paper products such as disposable diapers and wet tissues.

In 2008 LG Household and Health reported annual sales of 1,355 bn KRW, and a net profit of 121bn KRW.

2009 revenue strong

This year saw quarterly results increase compared to 2008’s figures with first quarter revenue coming in at 387 bn KRW, over 10 percent higher than last year, and second quarter revenue was over 11 percent higher in 2009 standing at 361 bn KRW.

The Face Shop specializes in skin care, cosmetics, baby care, and fragrance products and claims to be the third largest company operating in the domestic cosmetics market.

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