Potential Savior
The Optis-Solid consortium is on the verge of taking over Pantech, and now there is a positive signal that Pantech can secure even a financial investor.
According to industry sources on Aug. 26, domestic investment firm Smilegate Investment is positively considering investing in Pantech, and Optis Chairman Byun Yang-kyun, who has taken part in the takeover of Pantech, has become the new Chairman of Smilegate Investment. Once the Optis-Solid consortium completes the acquisition of Pantech next month, Smilegate Investment is expected to become a strong financial assistant for the new Pantech.
Smilegate Investment is a mid-size venture capital firm founded in 1999. It has invested in more than 300 venture companies, including communications equipment producer Solid and online game developer Smilegate.
Chairman Byun is chairman of Optis, which leads the takeover of Pantech. This is why some industry watchers say that Smilegate Investment will raise the remaining money needed to acquire Pantech. Previously, the consortium made a down payment of 4 billion won (US$3.38 million) in July and an intermediate payment of 4 billion won (US$3.38 million) on Aug. 17. In order to complete the acquisition, it needs to pay the remaining balance of 32 billion won (US$27.03 million) in full by Sept. 4.
As the consortium has now secureed a medium and long-term financial supporter, the expectation is emerging that Pantech will recover quickly when it is acquired. In the future, Pantech will start overseas businesses in the Indonesian market.