Hon Hai Precision, TECO Electric & Machinery announce AI data center alliance

Hon Hai Technology and TECO Electric & Machinery announced a share exchange and strategic alliance. Seizing on the development of global AI data center construction towards standardization and modularization, the two companies will jointly explore AIDC business opportunities. Global customers will be able to tap data center modular products, electromechanical engineering services and solutions. According to terms approved by both boards, respectively, TECO will take a 0.519% stake in Hon Hai Precision (HNHPF), the formal name Foxconn trades on at the Taiwan Stock Exchange. In turn, Foxconn will own 10% in TECO. The latter will issue 237,644,068 new shares to Foxconn, and Foxconn will issue 72,481,441 new shares to TECO, implying a share exchange ratio of approx. 1 to 0.305. The no-cash transaction is targeted to complete in fourth quarter of this year, conditional on regulatory approvals.