Samsung Buys Stake in Local Handset Manufacturer
Samsung is buying a minority stake in the local handset manufacturer, Pantech, making it the third largest shareholder in the company.
Samsung is paying US$48 million for a 10 percent stake in the company, which already includes Qualcomm and the Korea Development Bank as shareholders.
Qualcomm acquired its 12 percent stake in the company when it agreed to convert debts into equity. Patent licensing firm, InterDigital also converted patent royalty debts into equity.
Pantech is the country’s third largest mobile phone manufacturer, but had been under a court-managed debt restructuring programme from 2007-12.