Micromax eyes stake in South Korea's Pantech: sources

Tags: Micromax, Gadgets
India's No.2 smartphone marker Micromax Informatics Ltd has expressed interest in buying a stake in South Korean peer Pantech Co Ltd as part of its drive to expand overseas and go upmarket, two sources said on Monday.

Pantech, South Korea's No.3 smartphone maker, has been under a debt-restructuring programme after suffering six consecutive quarters of losses due to fierce competition.

"Micromax told Pantech that it was interested in a stake in the company," one of the sources said, declining to elaborate on the size of a potential deal and other details.

Nine creditor banks own a combined 37% of Pantech, while Qualcomm Inc has a 12% stake and Samsung Electronics Co Ltd holds 10%.

"Micromax is among those who are interested in Pantech," another source said.

The two sources declined to be identified because of the confidentiality of the sales process.

High-end smartphone maker Pantech has struggled against competition from giant rivals Samsung Electronics and LG Electronics Inc in South Korea, where nearly 70% of mobile users have smartphones.

Pantech also sells phones in such markets as the United States and Japan.

Micromax has brought smartphones to the masses in India's price-sensitive market where basic handsets still dominate, with heavy advertising and phones based on Google Inc's Android software starting at $50 - almost half the price of a comparable Samsung model.

Now the unlisted company backed by private equity firms TA Associates and Sequoia Capital is trying to push into pricier segments dominated by global brands and break into overseas markets.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Neither secular nor socialist, India at 66 is back where it began

    The republic has entered its 66th year but the nation is more than just another year older.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Kumar Jain

Building great cities (and nations)

Fifteen to twenty years’ span is the time when humans ...

Kuruvilla Pandikattu SJ

Defining success differently

Researchers spent four decades studying a group of mathematically talented ...

Shona Adhikari

All roads lead to Delhi, as it gears up for art fair

With the seventh edition of India Art Fair (IAF) coming ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture