Optis consortium to take over Pantech
Detailed revival plan available in August
By Lee Min-hyung
Pantech headquarters in Mapo, Seoul. A consortium led by local optical maker Optis signed a deal Friday to take over the nation’s smallest handset maker. / Courtesy of Pantech
A consortium led by local optical manufacturer Optis signed a deal Friday to take over the nation’s No. 3 smartphone maker, Pantech, ending the handset maker’s year-long effort to find investors after filing for court receivership in August of last year, according to an industry source.
“Once a Seoul court approves the deal, the consortium will pay an acquisition cost to finalize the deal,” the source said. “The exact cost has yet to be decided.”
The deal came about two months after the cash-strapped handset maker asked the Seoul Central District Court to stop the receivership in May, casting doubt on the possibility of the company’s revival. But in June, the consortium expressed interest in acquiring Pantech, signing an agreement with the debt-ridden company about a possible takeover.
“After the deal, both sides will discuss detailed corporate rehabilitation processes,” the source said. “The discussion is expected to finish in August at the earliest. The result will then be submitted to creditors.”
Local telecom device maker Solid also joined the consortium on Thursday. The company said it would invest 6 billion won to boost its plan to tap into Southeast Asian markets. The company is doing broadcasting and telecommunications business in America, Europe and the Middle East. Its sales figure exceeded 200 billion won last year. A Solid representative was unavailable for comment.
Pantech was founded in 1991 and has long been one of the nation’s biggest smartphone makers. But its business began to go downhill after struggling with mounting debts in 2007. At that time, experts said the company failed to compete with its two major rivals
Samsung and Apple. Pantech has since lost its brand value, failing to catch up with the latest market trend.
The Optis consortium is expected to have synergies with the handset maker by going global with Pantech’s high-end technology. Optis is also set to sell high-end IT products in the Indonesian market by incorporating Pantech’s technology and brand value. Optis has already succeeded in setting up a manufacturing line in the Philippines.