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Hon Hai Precision Industry ( (HNHPF) ) has provided an update.
Hon Hai subsidiary FIH Mobile has acquired 58,324,000 common shares of Execustar International Limited at USD 1 per share, lifting its stake to 100% in a transaction valued at USD 58.3 million. The move, classified as a related-party, long-term investment, represents 1.55% of total assets and 3.38% of owners’ equity, and further consolidates Hon Hai’s control over its investment structure.
Execustar International has in turn invested USD 58.3 million to take full ownership of Proper Charm Limited through a similar 58,324,000-share subscription, while Proper Charm has likewise acquired 58,324,000 shares in Chief Expertise Limited for USD 58.3 million. These cascading, intra-group capital increases are aimed at strengthening wholly owned subsidiaries without changing Hon Hai’s business model, tightening internal control of its capital chain while using private funds for long-term strategic positioning.
More about Hon Hai Precision Industry
Hon Hai Precision Industry, better known globally as Foxconn, is a major electronics manufacturing services provider, supplying leading technology brands with components and finished devices. Through subsidiaries such as FIH Mobile, the group also invests in and manages a network of related entities to support its global production and supply-chain operations.
See more insights into HNHPF stock on TipRanks’ Stock Analysis page.