South Korea-based electronics company Samsung has confirmed to news sources that it has acquired a 10% stake in local smart phone maker Pantech for $48m (KRW53bn). The company said the investment was designed solely to enhance the relationship between the two firms which have had supplier agreements over the past year.
Pantech is the third largest mobile phone maker in Korea, which has sparked confusion over the reasoning behind the deal. However, Samsung has confirmed that it is only a silent investor and will not play a part in the operating side of the business. In a statement to tech news site, The Next Web, Samsung stated that the recent investment was about internal mobile components it sells to Pantech for the company’s devices.
According to the electronics trade press, in 2012 alone, Pantech purchased KRW235B ($211m) worth of electronic from Samsung.
Following the deal, Samsung will become the third largest shareholder in Pantech behind US-listed chip maker Qualcomm and Korea Development Bank.