Hon Hai invests $36.5 million in Foxconn II Factories

TAIPEI - Hon Hai (TW:2317) Precision Industry Co., Ltd., widely known as Foxconn (SS:601138), has announced the acquisition of a 50% stake in Foxconn II Factories, LLC for a total investment amount of USD 36,500,000. The transaction, which took place today, marks a significant expansion for the company.

The acquisition was decided upon through written consent of the sole director of Hon Chi International Investments Co., Ltd., a subsidiary of Hon Hai. The terms of the deal stipulate that the completion of the transaction is contingent upon meeting certain conditions precedent, including obtaining necessary regulatory approvals.

This strategic move by Hon Hai is intended for long-term investment purposes. The company’s shareholding percentage in Foxconn II Factories, LLC post-acquisition stands at 50%, with no restrictions on rights associated with the shareholding.

Financially, the investment represents a minor fraction of Hon Hai’s total assets and equity, with a 0.09% ratio to total assets and a 0.2% ratio to owners’ equity based on the most recent financial statements. The company’s operating capital was reported at NTD 252,428,890,000.

No broker was involved in the transaction, and therefore, no broker’s fee was paid. Additionally, there were no dissenting opinions from directors regarding the acquisition, and the counterparty of the transaction is not a related party.

Hon Hai has not disclosed any changes to its business model as a result of this acquisition, and there have been no recent transactions between Hon Hai and Foxconn II Factories, LLC in the past year. The source of funds for this acquisition is private capital.

The company has not specified any further details regarding the transaction or the expected impact on its financial position. This acquisition is part of Hon Hai’s broader strategy to diversify and strengthen its investment portfolio.

This news is based on a press release statement and provides the latest factual information on Hon Hai’s business activities.

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