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Hon Hai Acquires 15% Stake In Asia Pacific Telecom For NTD11.64 Billion
Posted By ChinaTechNews.com Editor On May 29, 2014 @ 9:47 am In Business,Telecom & Wireless | No Comments
Hon Hai Group submitted a filing to Taiwan Stock Exchange which revealed that its subsidiary Ambit Microsystems Corporation will invest NTD11.64 billion to buy newly issued shares of Asia Pacific Telecom, a Taiwanese telecom carrier.
The company may implement a merger with the latter in the future. Hon Hai said in the filing that Asia Pacific Telecom will issue 826.407 million new shares. Ambit Microsystems will purchase 582,888,468 of those shares at the price of NTD20 per share; meanwhile, the company will introduce international investors to buy the remaining 243,518,532 shares.
A spokesperson from Hon Hai revealed to local media that after the transaction, Ambit Microsystems will own a 15% stake in Asia Pacific Telecom.
Apart from the share purchase deal, Ambit Microsystems and Asia Pacific Telecom will implement a merger via a share swap, with Ambit set to be disbanded after the merger.
Hon Hai Group is expanding its businesses into the telecom sector. In October 2013, the group invested NTD9.18 billion, which was about USD311 million, in the purchase of two 4G mobile licenses.
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