Pantech Puts Itself Up for Sale, Seeking A Cool $366 Million

Pantech, based in Korea, has staked a For Sale sign in its front lawn. The company, which declared the equivalent of bankruptcy last month, is seeking a buyer to scoop up the entire business. Pantech has been facing trouble all year long. It twice sought delays in debt payments and entered into court receivership in August. The company believes it will fetch a higher price if sold as a single entity (approx. $366 million) rather than broken up and sold in pieces (approx. $181 million). 

Bids for the company are due in early October. Pantech found itself unable to compete with Samsung and LG, which are also based in Korea. It faced financial losses six quarters in a row, which led to its debt problems and eventual bankruptcy.

Source: CNET

Samsung Acquires 10 Percent Stake In Pantech

Samsung said Wednesday that it recently acquired a 10 percent stake in Pantech for about $48 million. While that may seem like a bizarre move, especially since the two firms compete in the lower-tier Android smartphone market, Samsung said it will help its business relationship with Pantech.

“Samsung Electronics has agreed to acquire a 10-percent stake in Pantech, valued at approximately KRW 53 billion,” the company said in a statement provided to The Next Web. “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.” Pantech purchased 235 billion won worth of components from Samsung last year alone, Yonhap News said, noting that the smartphone maker trails behind Samsung and LG in the South Korean cell phone market.

Samsung is now the third largest shareholder in Pantech. Qualcomm holds the largest share with an 11.96 percent stake in the company and Korea Development Bank holds an 11.81 percent stake.