Embattled Pantech seeks last-ditch buyout

Pantech, South Korea’s troubled No. 3 smartphone-maker, is hoping to find a new owner before filing for bankruptcy.

The Seoul Central District Court said Tuesday that a local consortium, led by optical manufacturer Optis, has signed a memorandum of understanding with Pantech, with the two sides set to complete the deal by July 17.

The consortium plans to start its own inspection into the company and to finalize the acquisition process.

Pantech, which has suffered from sluggish device sales, was put under a court receivership in August last year. After three failed attempts to find a buyer over the past year, the company was on the brink of liquidation.

The court approval came the day before the company’s filing for bankruptcy.

Industry watchers predicted business synergies between Pantech and Optis, one of the nation’s biggest optical manufacturers.

Established in 2005 by former Samsung Electronics executive Lee Joo-hyung, Optis logged 600 billion won ($536 million) in sales last year. In 2014, the company acquired a 49.9 percent stake in TSST, formerly a joint venture between Samsung Electronics and Toshiba. It plans to wholly acquire the company by 2017.

But predictions were mixed on whether Pantech would be resurrected as a smartphone-maker or enter new business areas.

Sources said Pantech could focus on the Southeast Asian market considering the company’s brand awareness there. Optis has also operated production plants in Indonesia and the Philippines.

Amid higher expectations than ever, the two sides are allegedly finalizing talks on detailed conditions, including the bidding price.

“The bidding price is the key for the deal’s success,” said an industry source.

According to Samjong KPMG, the account firm supervising the Pantech sale, the firm’s liquidation value stands at about 150.5 billion won.

Optis is said to have already paid 2 billion won as a down payment, which reflects the company’s strong will to ink the deal, sources said.

By Lee Ji-yoon (jylee@heraldcorp.com)