Hon Hai unit acquires full stake in Foxconn New Business

TAIPEI - Hon Hai (TW:2317) Precision Industry Co. Ltd. announced on Monday that its subsidiary, Hongfujin Precision Electronics (Zhengzhou) Co., Ltd., has fully acquired shares of Foxconn (SS:601138) New Business Development Group Co., Ltd. The transaction, which took place on the same day, is valued at 77.67 million RMB.

The acquisition is a strategic move by Hon Hai, also known as Foxconn, to increase its stake in its new business group to 100%, thereby consolidating its investments. According to the statement, the transaction did not involve cash but was part of a capital increase for the subsidiary.

The board of directors approved the transaction on Monday, with no dissenting opinions reported. The deal did not involve any brokers or broker’s fees, and the purchase was made using self-owned funds. The company has stated that the acquisition is a long-term investment.

As of now, the cumulative amount held by Hongfujin in Foxconn New Business Development Group Co., Ltd. totals 1,627.67 million RMB. This investment represents 0.90% of the total assets and 1.99% of the equity attributable to owners of the parent company, based on the most recent financial statements.

The transaction did not change the business model of Hon Hai and was conducted between related parties, with Hongfujin being a subsidiary of Hon Hai. The press release did not disclose any additional information regarding future plans or transactions with the counterparty.

This move is part of Hon Hai’s broader strategy to diversify its investments and strengthen its position in new business areas. The information is based on a press release statement provided by RNS, the news service of the London Stock Exchange (LON:LSEG).

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