While not as well-known in Ireland as its bigger compatriots, South Korea’s third largest mobile manufacturer Pantech has been put up for sale after failing to pay off debts.
The board had been desperately trying to keep the company afloat this year, but following its second attempt at restructuring its debt and asking for a deadline extension on paying back the money it owes, they have succumbed to defeat and will now listen to any offers.
According to CNet, the decision to sell the company comes after its creditors and own finance team realised that the widening gap between its liquidated value of 189bn Korean won (€143m) and its going concern value of 382bn Korean won (€288m) was too much to bear.
Interest in the company appears to be considerably high from both a national and international level, but South Korea’s own largest telecoms company, SK Telecom, appear to be the front-runners.
International interest meanwhile has been high this year given the company’s public financial difficulties with Reuters reporting last April that India’s largest mobile manufacturer, Micromax, had been considering purchasing a sizeable stake in the South Korean company.
Micromax earlier this month were one of the first companies to be publically stated as producing a variant of Google’s Android One phone due for release in the country’s competitive market.
Seoul image via Shutterstock
