Integration of the two organizations geared towards supporting goal of
Pantech becoming one of the world's top five handset manufacturers
SEOUL, August 29, 2005 - Pantech Co., an affiliate of the Pantech group,
one of the world's leading mobile communications groups, announced today
that it has decided to merge with SKY Teletech Co., another unit of the
group, to facilitate the overall goal of the group becoming one of the
world's top five mobile handset manufacturers.
Pantech Co. and SKY Teletech approved the planned merger at their
respective board meetings today. The companies expect to complete the
merger - with the two organizations being combined under the Pantech
brand name - by the end of this year, after shareholder approval.
Sung-Kyu Lee, President & CEO, Pantech Co., Ltd., said: "With the
completion of this merger, we will have moved one step closer to
achieving our overarching goal of the group becoming one of the world's
top five global handset manufacturers."
"Pantech has the GSM technology and know-how of opening up new
opportunities in global markets, while SKY Teletech has a strong brand
in the local CDMA market. We can expect significant synergies through
the combination of the two organizations, as well as economies of
scale," said Mr. Lee.
The merger will also help to enhance the Pantech brand through the
combination of the R&D prowess of the two companies and by introducing
SKY Teletech's proven design and marketing capacity to sophisticated
users in the global premium market. Due to innovative handset
functionality and attractive styling, SKY has been one of the most
popular premium brands in the Korean market in recent years.
Pantech&Curitel Communications Inc., another unit of the Pantech group,
acquired 60 per cent of the shareholding of SKY Teletech - formerly
known as SK Teletech Co. - from SK Telecom, Korea's leading mobile
service provider, in May.
Pantech Co. and SKY Teletech will be merged at a ratio of 11.59 to 1.
One SKY Teletech share will be exchanged for new 11.59 Pantech Co.
shares.
Pantech&Curitel Communications Inc. will be the largest shareholder in
the newly integrated Pantech Co., followed by SK Telecom. As the second
largest shareholder, SK Telecom is expected to help Pantech to
strengthen its strong foothold in local and overseas markets.
The Pantech Group is Korea's second largest mobile phone manufacturer in
terms of handset sales and the world's seventh largest. Pantech, as a
group, expects to export handsets to more than 51 countries worldwide.
About Pantech:
Pantech, through its affiliates - Pantech Co., Ltd. and Pantech&Curitel
Communications, Inc. - is one of the world's leading providers of mobile
communications solutions. The affiliates are collectively better known
as "Pantech". Pantech Co., Ltd. was set up in 1991 as a pager
manufacturer within a rapidly expanding market. In August 1997, Pantech
Co., Ltd. was listed on the Korea Stock Exchange and moved into the
development and production of CDMA and GSM handsets. Pantech&Curitel
Communications, Inc., which is also publicly traded on the Korea Stock
Exchange, has been developing industry leading Analog, CDMA, and
GSM/GPRS products since the 1980s. In May 2005, Pantech&Curitel
Communications, Inc. acquired a majority shareholding in SK Teletech
Co., Ltd., the handset manufacturing arm of SK Telecom. SK Teletech
specializes in mobile communications terminals and maintains the well
known SKY handset brand. Pantech, through its affiliates, has been
responsible for a number of breakthrough innovations in the mobile
technology sector, including the introduction in 2004 of the world's
first fingerprint recognition camera phone, as well as award winning
camcorder and MP3 phones. Pantech collectively has more than 5,000
employees and a total of 20 regional sales offices worldwide. For more
information on Pantech, please visit http://www.pantech.com
and/or http://www.curitel.com