Samsung said Wednesday that it recently acquired a 10 percent stake in Pantech for about $48 million. While that may seem like a bizarre move, especially since the two firms compete in the lower-tier Android smartphone market, Samsung said it will help its business relationship with Pantech.
“Samsung Electronics has agreed to acquire a 10-percent stake in Pantech, valued at approximately KRW 53 billion,” the company said in a statement provided to The Next Web. “The investment is aimed at solidifying our relationship with Pantech, a key component customer of Samsung. Samsung will have no involvement in Pantech’s business management in any way or form.” Pantech purchased 235 billion won worth of components from Samsung last year alone, Yonhap News said, noting that the smartphone maker trails behind Samsung and LG in the South Korean cell phone market.
Samsung is now the third largest shareholder in Pantech. Qualcomm holds the largest share with an 11.96 percent stake in the company and Korea Development Bank holds an 11.81 percent stake.