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 Pvt Ltd, as per an exchange filing. The board of directors approved the transaction on June 25. The company acquired the shares at ₹10 per share, amounting to a total investment of $37.2 million.
Following the transaction, Foxconn Singapore Pte Ltd holds 23.18 billion shares in the India unit. This accounts for a 99.99999996 per cent stake with a cumulative value of $2.82 billion. Separately, Yuzhan Technology (India) Pvt Ltd holds 10 shares valued at $1.5, representing a 0.00000004 per cent stake in the India entity. There are 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. Furthermore, the transaction reflects a capital increase in the subsidiary rather than a purchase from external parties. 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 ($9.9 billion approx.) as per the exchange filing.
The transaction does not involve any change in the company’s business model. No dissenting opinions were raised by directors. The agreement includes no restrictive covenants or significant contractual conditions. The shares held are not subject to any encumbrances such as pledges or other restrictions.
Foxconn, a subsidiary of Hon Hai Precision Industry, has been expanding its business in India. This is 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.