Korean electronics giant Samsung Electronics have acquired a 10% stake of South Korea’s third-largest mobile device makers Pantech. The deal, worth a reported 53 billion Korean won ($48 million), makes Samsung Electronics the third-largest shareholder of Pantech, behind chipmakers Qualcomm and the Korea Development Bank.
To alleviate concerns regarding potential conflicts of interest, Samsung has released a statement about the purchase:
“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.”
Pantech’s relationship with Samsung stems from its purchases of Samsung components for its devices, which is making a name for itself in the US in the middle-to-low end markets. This latest investment from Samsung follows the recent 3.08% investment into Sharp worth 10.4 billion won ($112 million), which also granted the Korean company access to the struggling Japanese company’s technology.
(Source: The Next Web)