South Korean handset manufacturer, Pantech announced that it has entered into a debt-to-equity conversion agreement with US major Qualcomm with Qualcomm absorbing all of Pantech’s $ 76.26 million debt which will then be converted as equity for Qualcomm.
Qualcomm will acquire more than 12 % stake in Pantech as well as Curitel Communications. Qualcomm however will serve only as passive investor with no participation on the board or management.
"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," said Yulmo Yang, spokesperson for Pantech.
Pantech managed to record sales of 2.2 million handsets in Q2 2009 with 12 % market share in the domestic market.