Micromax plans to buy a stake in Korean smartphone maker Pantech: Report

Pantech Vega Iron
Pantech’s Vega Iron smartphone

As Micromax expands beyond India, the company is looking for ways to further strengthen its smartphone business. In the same bid, the company is said to be looking in buying a stake in the struggling South Korean smartphone maker Pantech.

According to a report in Reuters, Micromax has told Pantech that it is interested in buying a share in the company but the details about the potential deal are unclear right now.

Pantech, which has released some great smartphones, is struggling to compete with its domestic rivals Samsung and LG. The company also sells select phones in Japan and United States via telecom operators.

It is unclear why exactly Micromax plans to invest in Pantech as a complete buyout would have still made sense as that would have given Micromax the much-needed R&D prowess and design capabilities. The acquisition would also have given Micromax entry in key US market with Pantech brand but Micromax seems to have something else planned.

Other key takeaways from Reuters report

  • Nine creditor banks own a combined 37 percent of Pantech, while Qualcomm has a 12 percent stake and Samsung Electronics Co Ltd holds 10 percent.
  • Micromax isn’t the only company interested in Pantech
  • Pantech is currently under a debt-restructuring programme after suffering six consecutive quarters of losses.

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