Rough Sale

 

Samjong KPMG, which is in charge of the sale of Pantech, is going to accept additional letters of intent to take over the handset maker, which filed for court receivership.

“The deadline for a letter of intent was 3 p.m. today. But some investors said that the deadline was too tight, because today was a national holiday in China,” remarked an official at Samjong KPMG on Oct. 7. The official continued by saying, “Our company will accept letters of intent in the future by rearranging the schedule,” adding, “However, we will proceed with the sale of Pantech as previously planned. So, there will be preliminary bidding on Oct. 29.”

Chinese companies are believed to have submitted letters of intent by 3 p.m. An associate at Samjong KPMG said, “We cannot provide information about the number or name of participating companies, aside from the fact that Chines firms participated.”

However, industry sources said that only one Chinese company presumably submitted a letter of intent. Therefore, many believe that Samjong KPMG's decision is attributable to the fact that the participation of only one company may led to a bidding failure.

The disposal of Pantech will be done by attracting outside capital through a paid-in capital increase by way of third-party allotment and the issuance of corporate bonds. Once a preferred bidder is chosen, an investment firm is going to be decided by the end of the year after going through due diligence. The sale is scheduled to be finalized by February 2015.

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