Samsung to Increase Stake in Rainbow Robotics, Becoming Korean Robot Maker’s Largest Shareholder

Samsung to Raise Stake in Rainbow Robotics, Becoming Korean Robot Maker’s Top Shareholder

In a move aimed at accelerating the development of intelligent advanced humanoids, Samsung Electronics plans to increase its stake in Kosdaq-listed Rainbow Robotics. The tech conglomerate will acquire an additional 20.53% stake in the company for over 267 billion won (approximately $180 million), making it the largest shareholder with a 35% stake.

According to a regulatory filing made by Rainbow Robotics on Tuesday, this significant move is part of Samsung’s efforts to strengthen its presence in the rapidly growing AI-powered humanoid robot space. The deal is expected to be completed on February 17, pending government approval.

This announcement marks a significant expansion of Samsung Electronics’ involvement with Rainbow Robotics, which it first entered in January 2023 by acquiring a 10.22% stake worth 59 billion won. Following the completion of this new transaction, Oh Jun-ho, one of the company’s founders and current largest shareholder, will see his stake reduced from 17.37% to 7.78%. Other family members, including wife Yoon Hye-sun and children Oh Soo-jung and Oh Soo-hyung (also known as Erick), who are also shareholders, will also experience a reduction in their stakes.

Rainbow Robotics was founded in 2011 by a team of researchers from the Humanoid Robot Research Center at the Korea Advanced Institute of Science and Technology, the nation’s leading science and technology university. This pioneering team made history in 2005 by developing South Korea’s first two-legged walking robot, known as Hubo.

The partnership between Samsung Electronics and Rainbow Robotics is expected to unlock new possibilities for the development of AI-powered robots capable of learning and analyzing situational data and environmental variables through AI algorithms. The combined expertise will also allow the companies to utilize Rainbow Robotics’ collaborative robots, dual-arm mobile manipulator, and autonomous mobile robots in manufacturing and logistics automation tasks.

Rainbow Robotics’ innovative technology has already garnered significant attention, with other major South Korean conglomerates expanding their robotics businesses. For instance, Hyundai Motor acquired a controlling stake in Boston Dynamics from SoftBank Group back in 2009, valuing the maker of dog-like robots at approximately $1.1 billion. Additionally, Doosan Group, one of Korea’s oldest and largest conglomerates, listed its collaborative robot arms unit Doosan Robotics last year after raising $312 million in the country’s largest initial public offering (IPO).

As a result of this new development, Rainbow Robotics will become a subsidiary of Samsung Electronics, with its financial results subsequently consolidated into those of the latter.

Source: www.forbes.com