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TAIPEI - Hon Hai (TW:2317) Precision Industry Co., Ltd., also known as Foxconn (SS:601138) Technology Group, has acquired a 25% equity stake in Goertek Electronics Vietnam Co. Ltd. for a total transaction value of $50 million. The deal, which took place on Friday, February 21, 2025, is part of a strategic investment to expand Hon Hai’s presence in the Southeast Asian market.
The acquisition was decided through a shareholder’s resolution and did not involve any brokers or brokerage fees. According to the details provided, the transaction was negotiated based on the book value of Goertek Electronics Vietnam. The payment terms include preconditions such as obtaining necessary approvals from relevant regulatory authorities.
The investment represents a small fraction of Hon Hai’s total assets and equity, with a 0.0480% ratio to total assets and a 0.1030% ratio to owners’ equity, according to the company’s most recent financial statement. The operating capital of Hon Hai was reported as NTD-241,579,390,000.
There were no dissenting opinions from directors regarding the transaction, and the counterparty is a related party, although specific details about the relationship were not disclosed. The board of directors’ resolution and the transaction itself were both dated February 21, 2025. No unreasonable opinion was issued by the CPA involved, Danny Cheng of ATAX Accounting Firm, holding practice certificate number Financial-Supervisory-Securities-corporate-5720.
This move by Hon Hai is part of a broader trend of technology companies investing in Vietnam, a country that has become an increasingly important hub for electronics manufacturing in Asia. The transaction does not involve a change in Hon Hai’s business model, and the source of funds for this acquisition is private capital.
This information is based on a press release statement and provides a glimpse into Hon Hai’s strategy to strengthen its market position through targeted investments.
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