Samsung has confirmed it has invested in South Korean mobile hardware firm Pantech, acquiring a 10 per cent share in the company.
The Samsung Galaxy S4 manufacturer has acquired a stake in Pantech, South Korea’s third-largest mobile device hardware maker.
“Samsung Electronics has agreed to a 10 per cent stake in Pantech, valued at approximately KRW 53 billion (£31.5 million),” said Samsung in a statement. “The investment is aimed at solidify 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.”
The company said it will help further the relationship between the two firms, including their work involving tablet and smartphones.
In the past year, Pantech is said to have spent 235 billion won (£140 million) buying Samsung-owned components and electronics. The two companies already work together on displays and semiconductors.
Otherwise, Samsung and Pantech are rival companies, as the two both product a similar range of smartphones and tablets. However, Pantech’s global sales have not been successful, despite the brand being strong in Korea.
Pantech has been suffering from financial issues lately, similar to other electronics firms based in East Asia. Samsung’s investment will contribute to the five-year refinancing programme outlined for Pantech last year.
Samsung is now the company’s third-biggest shareholder. Qualcomm, the SoC maker, owns 11.96 per cent, the Korea Development Bank has an 11.81 share and Samsung now takes 10 per cent.
In March, Samsung also invested in another struggling Asian company, once a market leader in its sphere – Sharp. The firm invested 10.4 billion yen (£67 million) in Sharp, equating to a 3.08 per cent in the company, allowing Samsung an increased access to the company’s display technologies.
Next, read why Samsung is hurting Android.