Taipei – Yes yes (TW:) Precision Industry Co., Ltd., also known as Foxconn (SS:), through its subsidiaries, announced the acquisition of 100% of the shares in two new energy companies, deepening its entry into the renewable energy and electric vehicle sectors. The transactions, dated Monday, involve the purchase of shares in Foxconn New Energy Battery (Zhengzhou) Co., Ltd. and Foxconn New Energy Automobile Industry Development (Henan) LTD., with each deal valued at CNY 600,000,000.
The shares were acquired by subsidiaries HONGFUJIN PRECISION ELECTRONICS (ZHENGZHOU) CO., LTD. and Foxconn Innovation Industry Development Group Co., LTD., respectively. These investments are part of a strategic move to diversify Foxconn’s business portfolio and establish a foothold in the growing new energy market.
The Board of Directors approved the deals on Monday, and both deals are funded through private capital, indicating a significant commitment to long-term investment in these sectors. The acquisitions did not involve any middlemen or fees, and are not expected to change Hon Hai’s business model.
According to the press release, the ownership percentage of the two subsidiaries in the acquired companies is 100%, without any restrictions on rights. The investments represent a small portion of Hon Hai’s total assets and equity, at 0.210% to total assets and 0.472% to the battery company’s equity, and 0.062% to the total assets and 0.17% to the automobile company’s owners’ equity.
These acquisitions underscore Hon Hai’s strategic focus on expanding its presence in the renewable energy and electric vehicle industries. The company’s approach to these investments reflects a broader trend among global technology companies seeking to diversify and innovate in sustainable energy solutions.
The information is based on a press release, and the financial details of the transactions have been announced in accordance with regulatory requirements. No dissenting opinions were reported among board members regarding the deals, and the deals did not include any related parties. This move by Hon Hai could indicate growing interest in the new energy sector among major technology manufacturers.
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