Qualcomm takes equity in South Korea’s Pantech
Pantech, South Korea’s third largest phone maker, announced that Qualcomm would become a minority shareholder in both Pantech Co. Ltd. and Pantech & Curitel Communications Inc., as a result of the Korean company’s plan to convert its “outstanding debt” into equity for its creditors.
Qualcomm will become a passive investor, holding no more than 15% of Pantech’s common shares, without being part of the company’s management.
According to Dr. Cha Young Koo, president of Qualcomm Korea, “this conversion will create a stronger platform on which Pantech can continue to build its prior successes in developing unique and innovative products.”
(Pantech doublEye, commercialized in Korea under the Sky brand)
To further increase its market share, Pantech plans to launch new phones in Korea, Japan, and the US (through AT&T and Verizon).