Samsung has acquired a 10% stake in South Korea’s third-largest handset maker, Pantech, for $47.6m, as part of investments to strengthen its mobile business.
The acquisition makes Samsung the third-largest shareholder in Pantech, following chip maker Qualcomm and Korea Development Bank that own 11.96% and 11.81% stakes respectively.
Aimed at strengthening bilateral cooperation between both parties, particularly in the area of smartphones, the deal would assist the local handset firm to better finance its operations and gain more investor interest going forward.
Both firms have strong ties in semiconductor and display businesses, and Pantech bought electronic parts worth KRW235bn ($208m)from Samsung’s partners, such as Samsung SDI.
Pantech has been struggling to generate profits and maintain its market share in the midst of heavy competition from rivals, including Samsung and LG Electronics.
Earlier, the firm revealed its plans to focus on attracting investments to boost its financial health and increase its competitiveness.
