Hon Hai invests $1.49 billion in Foxconn Singapore

Published 14/03/2025, 12:06
Hon Hai invests $1.49 billion in Foxconn Singapore

TAIPEI - Hon Hai (TW:2317) Precision Industry Co., Ltd., widely known as Foxconn (SS:601138), has announced the acquisition of shares in two separate entities, marking a significant expansion of its investment portfolio. On March 14, 2025, the company disclosed a $735 million investment for a 50% stake in a new joint venture company, the name of which is yet to be determined.

The tech giant also reported purchasing approximately 2.018 billion shares at $1 each of Foxconn Singapore Pte Ltd, totaling $1.489 billion, effectively taking 100% ownership. This transaction was conducted between parent and subsidiary companies, with the board of directors deciding on the transaction through a resolution passed on the same day.

Foxconn stated that the acquisitions are part of a long-term investment strategy. No dissenting opinions were reported among the directors regarding these transactions, which were also ratified by supervisors or approved by the Audit Committee on the date of the resolution.

The investments represent 14.91% of the company’s total assets and 32.92% of the equity attributable to owners of the parent, as indicated in the most recent financial statement. The company clarified that the source of funds for both acquisitions is its self-owned fund, and there are no restrictions on the rights of the newly acquired shares.

The transactions did not involve any brokers or incur brokerage fees, nor did they signify a change in the business model for Foxconn. The company emphasized that both acquisitions are intended for long-term investment purposes.

These investments by Foxconn underscore its strategic focus on expanding its holdings and strengthening its position in the technology sector. The news is based on a press release statement and reflects the company’s ongoing efforts to diversify its investment portfolio.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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