TAIPEI (Reuters) - Hon Hai
Precision, the world's biggest electronics component
maker, said on Monday it had bought a 4.9 percent stake
in South Korean IT services firm SK C&C for 381 billion
won ($376.59 million).
The move marks Hon Hai's second merger in less than two months as
part of a broader effort to diversify away from the contract
Hon Hai, the major supplier of iPhones and iPads, paid 155,500 won
per share for the stake, which was for "long-term investment",
according to a company statement. It did not elaborate.
SK C&C said in a separate regulatory filing that Chey Tae-won, the
chairman of SK Holdings and biggest shareholder of SK C&C, was the
This knocks down Chey's stake from 38 percent to 33.1 percent in SK
C&C, through which he controls SK Holdings and other units including
the world's second-biggest chipmaker, SK Hynix Inc.
"Hon Hai is considering expanding its business portfolio into
information communication technology-centered services, and the fact
that they chose SK C&C as their partner is positive," an SK Group
She declined to comment on Chey's plans for the proceeds as it was a
Hon Hai's parent company, Foxconn Technology Group, said late in May
it would buy a stake in Taiwanese mobile telecoms operator Asia
Pacific Telecom for T$11.6 billion ($390 million) in a deal that
would expand its presence in Taiwan's fledgling 4G telecoms market.