South Korean electronics giant Samsung has bought a 10 percent stake in Pantech Corp., another South Korean company. According to reports, the deal has been valued at 53 billion won, roughly amounting to USD 47.6 million.
Pantech Corp. is South Korea's third-largest handset maker – Samsung told Yonhap News Agency that the deal will "help further solidify bilateral cooperation in smartphone and other business areas". Importantly, once it has made the purchase, Samsung will become the third-largest stakeholder in Pantech, after Qualcomm and the state-run Korea Development Bank.
Buys 10 percent stake in Pantech
Samsung confirmed the deal with The Next Web. It said, "Samsung Electronics has agreed to acquire a 10-percent stake in Pantech, valued at approximately KRW 53 billion. The investment is aimed at solidifying our relationship with Pantech, a key component customer of Samsung. Samsung will have no involvement in Pantech’s business management in any way or form."
Both the companies already work together in the semiconductor and display space. In fact, only last year, Pantech purchased parts worth 235 billion won from Samsung SDI, among other Samsung affiliates. Back home in South Korea, Pantech is only behind local rival Samsung and LG in terms of sales. That said, it is yet to replicate that success in the international market.
In March this year, Samsung was reported as being close to investing about $110 million in Sharp. The deal was to ensure a smooth supply of large-sized TV panels for Samsung ,while giving a boost to a struggling Sharp’s efforts to survive.