Pantech Enters into Agreement with Qualcomm
Such debt-to-equity conversion is part of a restructuring of Pantech’s outstanding debt into equity with many of its creditors. Under the terms of the agreement, Qualcomm will become a minority shareholder in each of Pantech & Curitel Communications Inc. and Pantech Co. Ltd. as a result of such conversion. Qualcomm will hold no more than 15 percent of the outstanding common shares of each company and will be a passive investor with no participation on the board or management of the companies. Park, Byeong-yeop, vice-chairman of Pantech, will continue to lead the management of the company and Mr. Park stated that Qualcomm’s and other creditors’ participation in the restructuring of the company:
- Confirms Pantech’s growth potential as Pantech proves its competiveness and delivers market value; and
- Contributes to the continued development of Korea’s wireless industry.
The transactions contemplated by the agreement will take place in stages over a number of months and the consummation of the transactions is subject to certain closing conditions.
“Pantech has enjoyed a long-standing relationship with Qualcomm and benefited from working closely with the Company, including using Qualcomm’s leading technologies, components, software and technical support. Pantech appreciates Qualcomm’s financial investment in our future under the deep trust between executive members of the two companies.” said Yulmo Yang, spokesperson for Pantech.
He also added, “Our strong design team, new focus on innovation and unique product offerings has, and will continue to, re-establish the company’s corporate identity as a prestigious and influential player in this industry.”
“Qualcomm is committed to supporting its valued customers as well as the overall wireless industry in Korea and worldwide,” said Dr. Cha Young Koo, senior vice president and president of Qualcomm Korea. “This conversion will create a stronger platform on which Pantech can continue to build its prior successes in developing unique and innovative products.”
Despite the recession in the handset market, Pantech has been in the black for eight consecutive quarters since April 2007 when the company put under workout, and the company gets its finance in order due to stabilization of financial system.
Pantech will strengthen its competitiveness by launching mobile phones with unique designs and innovative features. Pantech has increased its market share through the partnership with AT&T and Verizon, and the company keeps its position, one of big three Korean manufacturers with unique design and outstanding technologies. The company will continue to grow in foreign market by launching of smartphones via AT&T and Verizon and increasing sales of messaging phone. In addition, Pantech has ranked top in handset sales volume in Japan since 2005, except for Japanese manufacturers.
Pantech also strengthens its position in domestic market, focusing on high-end mobile phones such as next generation full-touch screen mobile phone adopting 3D UI, and takes a leap into a global major manufacturer by boosting sales and improving profitability.
웹사이트: http://www.pantech.co.kr
연락처
02-2030-0129
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