Foxconn, which is listed on the Taiwan stock
market under the name Hon Hai Precision Industry Co Ltd, would
pay T$20 a share for 582.9 million shares in Asia Pacific via a
private placement, both companies said in stock exchange filings
Asia Pacific and a unit of Foxconn are then expected to merge
fully via a share swap, pending agreement on terms, by June 20.
The deal comes as Foxconn, the world's largest contract
manufacturer of electronic goods, is branching out into new
areas including software and cloud computing, in addition to 4G
Foxconn has previously won one of the licenses to operate part
of Taiwan's 4G spectrum, which is expected to begin service
later this year.
"The deal should definitely benefit Hon Hai as they move into
4G, though it could be as long as seven years before they see
any real profit from their entry into the field," said Fubon
Securities analyst Arthur Liao.
Earlier this month, Asia Pacific had said it would soon decide
soon on a merger with either Foxconn or Chinese noodles maker
Ting Hsin International.
Foxconn will purchase Asia Pacific under its subsidiary company
Ambit Microsystems, the unit responsible for its future 4G
deployment, the stock exchange statement said. Ambit will be
dissolved and new company will operate under the name Asia
($1 = 30.0970 Taiwan Dollars)
(Editing by Michael Perry and Miral Fahmy)
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