Foxconn acquires 351.73 million shares in India arm investing $37.2 mn; stake rises to 99.99 pc

SINGAPORE: Taiwanese electronics manufacturer Foxconn Singapore Pte Ltd has acquired around 351.73 million additional shares in its Indian arm Foxconn Hon Hai Technology India Mega Development Private Limited, as per an exchange filing.

As the board of directors approved the transaction on June 25, Wednesday, the company acquired the shares at Rs 10 per share, amounting to a total investment of USD 37.2 million. Following the transaction, Foxconn Singapore Pte Ltd. holds 23.18 billion shares in the India unit, accounting for a 99.99999996 per cent stake with a cumulative value of USD 2.82 billion.

Separately, Yuzhan Technology (India) Private Limited holds 10 shares valued at USD 1.5, representing a 0.00000004 per cent stake in the India entity, with no restrictions on rights, the exchange filing added. As per the exchange filing, the acquisition was funded through private capital and designated as a long-term investment.

No broker fees were involved in the transaction as per the filing. Furthermore, the transaction reflects a capital increase in the subsidiary rather than a purchase from external parties. Additionally, the securities investment accounts for 3.55 per cent of Hon Hai’s total assets and 7.72 per cent of equity attributable to owners of the parent, according to the latest financial statements. The company reported operating capital of NTD -317.91 billion (USD 9.9 billion approx.) as per the exchange filing.

The transaction does not involve any change in the company’s business model, and no dissenting opinions were raised by directors. The company further stated that the agreement includes no restrictive covenants or significant contractual conditions, and the shares held are not subject to any encumbrances such as pledges or other restrictions.

The subsidiary of Hon Hai Precision Industry, Foxconn had been expanding its business in India driven by demand from Apple and its ‘3+3+3 strategy’ that looks to integrate three emerging industries, three core technologies, and three smart platforms.

The company added that the transaction does not involve any change in its business model, no director recorded a dissenting opinion, and there are no restrictions on the rights attached to the shares held. (ANI)