The Korea Times close
National
  • Politics
  • Diplomacy
  • Defense
  • Labor & Environment
  • Law & Crime
  • Health & Welfare
  • Embassy
  • Seoul & Provinces
  • Education
  • Foreign Communities
  • Obituaries
Biz & Tech
  • Auto
  • IT
  • Game
  • Manufacturing
  • Retail & Food
  • Energy
  • Construction
  • Airlines
Finance
  • Policies
  • Economy
  • Markets
  • Banks
  • Non-banks
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
Lifestyle
  • Arts
  • Books
  • Travel & Cuisine
  • Trend
  • Fashion
  • Around Town
  • Fortune Telling
Entertainment
  • K-pop
  • K-dramas & Shows
  • Movies
  • Music
  • Performances
  • Asia Model Festival
Sports
  • Football
  • Golf
  • Baseball
  • Other Sports
World
  • Asia Pacific
  • Americas
  • Europe & Africa
  • SCMP
Video
  • On the Spot
  • Feature
  • News
Photos
  • Photo News
  • Darkroom
Community
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
Biz & Tech
  • Auto
  • IT
  • Game
  • Manufacturing
  • Retail & Food
  • Energy
  • Construction
  • Airlines
Thu, March 4, 2021 | 18:27
IT
Will Pantech survive?
Posted : 2015-06-18 18:11
Updated : 2015-06-18 22:02
Mail
Print Preview
Font Size Up
Font Size Down
Optis-led consortium speeds up acquisition procedures

By Yoon Sung-won

Pantech has a glimmer of hope on the brink of bankruptcy as a consortium of local enterprises has emerged looking to take over the company.

Optis, a consortium of local medium-sized enterprises, sent a due diligence team to the headquarters of the nation's smallest smartphone manufacturer in Sangam-dong, western Seoul, Wednesday.

The team had a meeting with executives including Pantech CEO Lee Joon-woo to discuss a detailed schedule for due diligence and a possible acquisition on July 17 at the earliest, according to industry sources.

Optis signed a memorandum of understanding with the troubled handset maker for the possible acquisition after the Seoul Central District Court gave approval, Tuesday.

Sources said Optis may have to pay 40 billion won ($36.13 million) to acquire Pantech.

To show its willingness, the consortium already paid 2 billion won, or 5 percent of the total investment, as a guarantee deposit which cannot be refunded in the event of the collapse of the deal.

Former Samsung Electronics' executives have contributed to the ongoing deal.

Optis was founded by former Samsung Electronics executive Lee Joo-hyung in 2004. It manufacturers optical disk drives, auto-focusing equipment for cameras and smartphone camera modules. The company posted 15 billion won in operating profit and 599.5 billion won in sales last year.

A local private equity fund SkyLake Incuvest is the largest shareholder of the Optis consortium with 22.46 percent share. SkyLake Incuvest was established in 2006 by the former Information and Communication Minister Chin Dae-jae, who also had been a Samsung Electronics president before being the minister.

With the acquisition of Pantech, Optis is expected to diversify its business portfolio to the smartphone and the Internet of Things businesses as the handset maker holds more than 4,000 patent rights related to the telecom and the Internet of Things technologies.

The Optis consortium also aims at the markets for budget handsets in the Southeast Asian region, instead of competing with Samsung Electronics and LG Electronics, which are the biggest businesses in the global smartphone market.

Expectations are that Optis will conduct research and development in Korea and operate manufacturing in the Southeast Asian region once the deal is made. Optis has operated its own manufacturing line in the Philippines.

It is also expected that Optis may sell its products globally only through online channels. This strategy has been proved successful by the Chinese electronics maker Xiaomi.

There have been several bidders for Pantech's acquisition until the company requested the court to stop the receivership on May 27. But all of them ended up foundered, mostly due to the company's debt which exceeded 1 trillion won as of the first quarter this year.

"Though the acquisition deal is what should be welcomed by many, we cannot know for sure what will happen until the whole process is done," an industry source said.


Emailyoonsw@koreatimes.co.kr Article ListMore articles by this reporter









 
 
  • Transgender ex-soldier forced to discharge found dead at home
  • 2 people die after getting COVID-19 vaccine
  • 2 Korean nursing home residents die after getting AstraZeneca vaccine
  • Management of foreigners' ID to be strengthened
  • 'Chinese virus, get out!': Chinese lecturer assaulted in UK amid fears of anti-Asian racism
  • [INTERVIEW] 'We fight the gov't for our rights and future'
  • Hate crimes against Asian American on rise in US amid pandemic
  • Gov't to push for 'quarantine-free corridors' to support ailing aviation industry
  • Coupang Eats' new delivery fee policy hits riders
  • New virus cases bounce back to over 400
  • BLACKPINK's Rose to drop solo album next week BLACKPINK's Rose to drop solo album next week
  • Lee Seung-gi says new TV thriller series 'Mouse' is his 'most unique' piece Lee Seung-gi says new TV thriller series 'Mouse' is his 'most unique' piece
  • Gong Yoo, Park Bo-gum's 'Seobok' to hit theaters, streaming service in April Gong Yoo, Park Bo-gum's 'Seobok' to hit theaters, streaming service in April
  • Ha Eun-byeol, 'The Penthouse: War in Life,' actress denies bullying accusation Ha Eun-byeol, 'The Penthouse: War in Life,' actress denies bullying accusation
  • BTS again tops Billboard's Artist 100 chart, sets record as group act BTS again tops Billboard's Artist 100 chart, sets record as group act
DARKROOM
  • Bloody Sunday in Myanmar

    Bloody Sunday in Myanmar

  • Earth is suffering

    Earth is suffering

  • NASA's Perseverance rover is landing on Mars

    NASA's Perseverance rover is landing on Mars

  • Fun in the snow, sledding for everyone

    Fun in the snow, sledding for everyone

  • Our children deserve better: Part 3

    Our children deserve better: Part 3

  • About Korea Times
  • CEO Message
  • Times History
  • Content Sales
  • Media Kit
  • Contact Us
  • Location
  • Privacy Statement
  • Terms of Service
  • Mobile Service
  • RSS Service
  • 고충처리인
  • hankookilbo
  • Dongwha Group
  • Code of Ethics
Copyright