Micromax eyes stake in S Korea Pantech: sources

SEOUL, Apr 15 (Reuters): India's No 2 smartphone marker Micromax Informatics Ltd has expressed interest in buying a stake in South Korean peer Pantech Co Ltd as part of its drive to expand overseas and go upmarket, two sources said.

Pantech, South Korea's No 3 smartphone maker, has been under a debt-restructuring programme after suffering six consecutive quarters of losses due to fierce competition.

"Micromax told Pantech that it was interested in a stake in the company," one of the sources said, declining to elaborate on the size of a potential deal and other details.

Nine creditor banks own a combined 37 per cent of Pantech, while Qualcomm Inc has a 12-per cent stake and Samsung Electronics Co Ltd holds 10 per cent.

"Micromax is among those who are interested in Pantech," another source said.

The two sources declined to be identified because of the confidentiality of the sales process.

"Any matter such as partnership or acquisition is a subject matter of approvals by the Micromax board of directors and statutory rules and regulations. No such matter is currently under consideration of the Micromax Informatics board," the Indian company said in a statement, adding it would not comment on market speculation.