Micromax Denies Interest in South Korea's Pantech
Published on: 15th Apr 2014
Note -- this news article is more than a year old.
By: Ian Mansfield
India's second largest mobile phone manufacturer Micromax has denied media reports that it is interested in buying a stake in South Korea's struggling Pantech.
There had been reports that the South Korean handset manufacturer was in talks with its Indian counterpart to take a stake in the firm and inject cash to help pay down its mounting debts.
However, Micromax has denied that any such talks are taking place.
"Any matter such as partnership or acquisition is a subject matter of approvals by the Micromax board of directors and statutory rules and regulations. No such matter is currently under consideration of the Micromax Informatics board," a company spokesperson said. "
The Indian vendor is said to be concentrating on its recent expansion into the Russian market, and would see a South Korean investment as an unnecessary distraction.
South Korea's Pantech has struggled for several years, and recently filed for debt restructuring again. The company last restructured its debts in April 2007.
Nine creditor banks own a combined 37 percent of Pantech. Qualcomm and Samsung both took stakes in the firm last year in debt for equity swaps, and now own 10% and 12% respectively.
Last September, its founder, Park Byeong-yeop resigned after saying he was "too ashamed" to work for the company which had asked a third of its staff to take unpaid leave.