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SINGAPORE - Ingrasys (Singapore) Pte. Ltd., a subsidiary of Hon Hai (TW:2317) Precision Industry Co Ltd, has completed the acquisition of shares in FULIAN PRECISION TECHNOLOGY COMPONENT COMPANY LIMITED, with a total transaction amount of USD 23,400,000. This transaction, which took place on Tuesday, is part of a capital increase strategy for the subsidiary.
The shares were acquired from a related party, as both Ingrasys and Fulian Precision are under the umbrella of parent company Hon Hai Precision Industry Co Ltd, commonly known as Foxconn (SS:601138). The transaction did not involve any cash investment but was part of a broader strategy for long-term investment.
The Board of Directors of Hon Hai Precision made the decision for this transaction, which now results in Ingrasys holding a cumulative monetary amount of USD 324,000,000 in shares, translating to a 100% shareholding in Fulian Precision. There are no restrictions of rights associated with these shares.
As per the latest financial statements, the ratio of this securities investment to the total assets of the company is 0.4% and to the owners’ equity is 0.9%. The operating capital of Hon Hai Precision Industry Co Ltd is reported to be NTD -252,428,890,000.
The acquisition did not involve any brokers or broker’s fees and was funded by Hon Hai’s self-owned funds. There were no dissenting opinions from directors regarding this transaction, and it did not involve any change of business model for the company.
This strategic move aligns with Hon Hai’s investment policies and is based on a press release statement. The company has not disclosed any further plans for transactions with Fulian Precision for the past year or the expected coming year. The acquisition is expected to contribute to the long-term investment portfolio of Ingrasys and its parent company.
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