LG Household shares rise to record-high on TheFaceshop buying

SEOUL, Nov. 25 (Yonhap) -- Shares of LG Household & Health Care Ltd. shot up to
the highest level on record on the Seoul bourse Wednesday following the company's
acquisition the previous day of a smaller cosmetic rival.

Cosmetic and detergent maker LG Household traded 283,000 won (US$244.9) on the
Seoul main bourse as of 11:36 a.m., up 5.2 percent from Tuesday's close.
The nation's second largest cosmetic company said on Tuesday it sealed a deal to
purchase a 90 percent stake in TheFaceshop Korea Co., No. 3 market player
specialized in low-priced cosmetics for 420 billion won.
LG Household said the acquisition is designed to boost its market competitiveness.
"Upon the purchase of TheFaceshop, sales of LG Household are expected to increase
16.2 percent to 1.96 trillion won in 2010, expanding its market share," Lee
Jung-in, an analyst at Korea Investment & Securities Co. said in a report.
Lee said the acquisition price is appropriate, reaffirming the price target for
LG Household at 330,000 won.
pbr@yna.co.kr
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