New Delhi, June 28: Foxconn Singapore Pte Ltd, the world’s largest contract electronics manufacturer, has invested USD 37.2 million in its Indian arm by acquiring about 351.73 million shares in it.
The Foxconn Singapore Pte Ltd, in its stock exchange filing, described the transaction as a long-term investment funded through private capital.
Foxconn, which is officially the Hon Hai Technology Group of Taiwan, operates as a primary contract manufacturer for global tech giants like Apple, Microsoft, and Sony.
The company said the deal would not change its business model and noted there were no dissenting opinions from directors.
Following the transaction, Foxconn Singapore holds nearly all of Foxconn Hon Hai Technology India Mega Development Private Limited, with a 99.99999996 per cent stake valued at USD 2.82 billion.
Another Indian subsidiary, Yuzhan Technology (India) Private Limited, holds the remaining 10 shares.
Foxconn, formally known as Hon Hai, has been rapidly expanding its footprint in India, driven largely by growing demand from Apple, its key customer, as well as its internal “3+3+3” strategy aimed at long-term growth across new industries, core technologies and smart platforms.
Yuzhan Technology has already begun operations at its display module assembly unit in Tamil Nadu.
The filing showed the securities investment accounts for 3.55 per cent of Hon Hai’s total assets and 7.72 per cent of equity attributable to the parent’s owners, based on its latest financials. (BVI)
