Hon Hai subsidiary acquires Q-Edge stake for $537 million

Hon Hai Precision Industry Co.'s subsidiary, Foxconn Assembly Holding Corporation, completed the acquisition of 53.7 million shares in Q-Edge Corporation for a total of $537 million on Wednesday, according to a press release. The deal, approved by the subsidiary's board of directors, saw each share purchased at $10, as part of a capital increase for Foxconn Assembly Holding Corporation.

Following the acquisition, Foxconn now owns 57.52 million shares of Q-Edge, representing a full 100% ownership. The total value of these shares now stands at $575.2 million. Notably, the transaction does not impose any restrictions or pledges on the acquired shares. This purchase represents 0.46% of Hon Hai's total assets and 1.03% of its equity, according to the company's latest financial statement.

The funds for this acquisition were sourced from private capital, with the transaction occurring between related parties within the Hon Hai corporate structure. Notably, there were no brokers involved, and no directors expressed dissent over the deal. It is worth noting that this acquisition does not alter Hon Hai Precision Industry Co.'s overall business strategy.