Foxconn acquires $390 million stake in Asia Pacific Telecom
Foxconn Technology Group, one of Apple’s largest suppliers, has acquired a $390 million stake in Taiwanese mobile telecommunication operator Asia Pacific Telecom for T$11.6 billion ($390 million) as part of a deal that would expand its presence in Taiwan’s 4G telecommunications market. Foxconn is going to pay T$20 a share for 582.9 million shares in Asia Pacific through a private placement.
Foxconn is best known for manufacturing devices like iPads and iPhones, but it has been diversifying its services to become less dependent on Apple. Nowadays, Foxconn is exploring software and cloud computing along with 4G services.
Foxconn won one of the licenses to operate part of its 4G spectrum, which will begin service later this year. Asia Pacific chose Foxconn over Chinese noodles maker Ting Hsin International for the merger.
Asia Pacific and a Foxconn unit will merge fully through a share swap pending agreements by June 20th. Foxconn will buy Asia Pacific under its subsidiary Ambit Microsystems, which is the unit that is in charge of 4G deployment. Ambit will be dissolved and the combined company will operate under Asia Pacific Telecom.