Foxconn to acquire Asia Pacific Telecom
27 May 2014 | Kavit Majithia
Foxconn Technology Group is set to buy a stake in mobile operator Asia Pacific Telecom for approximately $390 million.
Foxconn is a supplier for Apple and the company is expected to expand its presence in Taiwan’s 4G market as a result of the deal. It will pay NT$20 per share for 582.9 million shares in Asia Pacific through a private placement, pending the agreement of mutual terms by June 20.
The deal marks Foxconn’s entrance into new service areas, including cloud, software and 4G, and it has previously won licences in Taiwan’s 4G spectrum, which are expected to begin services later this year.
Asia Pacific has been up for sale for some time, and the company said earlier this month that it would merge with either Foxconn or Chinese noodle manufacturer Ting Hsin International.
Foxconn – which the world’s largest electronic goods manufacturer – will purchase Asia Pacific under its subsidiary company Ambit Microsystems.