Samsung has announced that the company has bought a 10 percent stake in Pantech, the local South Korean mobile phone manufacturer and also a rival for Samsung Electronics. Reportedly the deal was struck at 53 billion won or ($47.6 million). This should help in the bilateral cooperation between the two companies, especially in the smartphone sector.
The investment will make Samsung the third largest stake holder in the company, fallowing chip maker Qualcomm, which holds 11.96 % and Korea Development Bank, which hold 11.81%.
Pantech is currently the third largest mobile phone manufacturer in South Korea, after Samsung and LG. The company mostly sells its handsets in the country, however some of it's phones have been made available in the US via Verizon and AT&T. Pantech has been in some trouble, as it suffered from large debts. The deal with Samsung should ease the financial situation for the company.
Samsung says that it will only remain as a passive investor and will play no role in the managerial decisions of Pantech. This is not the first time the two companies have worked together. Reportedly Pantech spent 235 billion won ( $211 million approximately) buying electronics and components from Samsung for manufacturing their devices.
Can't say this is the first time Samsung has made an investment in an other company. Back in March, the company announced that it bought 3.08 percent stake in Sharp, a Japanese electronic products manufacturer. As per reports, Samsung spent 10.4 billion yen (around $112 million) to complete the deal.