updated 08:03 am EDT, Tue May 27, 2014
Merger between Asia Pacific Telecom, Foxconn subsidiary expected in June
Foxconn is looking to acquire a large stake in Taiwan-based Asia Pacific Telecom, in order to have a greater influence on the country's 4G cellular phone services. The deal, said to be worth T$11.6 billion ($390 million), will be a precursor to a merger, where the telecoms company would join up with a Foxconn subsidiary, which could complete as early as this June.
Reuters reports Foxconn is offering T$20 ($0.66) per share for 582.9 million shares in Asia Pacific, followed by a full merger via a share swap by June 20th, pending an agreement of terms. Asia Pacific was reported to have claimed earlier this month it was considering a merger with either Foxconn or Ting Hsin International, a manufacturer of Chinese noodles, with Foxconn evidently being the better fit for the business.
Foxconn already owns a license for 4G spectrum in Taiwan, which it would have deployed under subsidiary Ambit Microsystems. Once the merger is completed, Ambit will cease to exist and will be replaced by Asia Pacific Telecom, which in turn would inherit the licenses. The 4G-based network was expected to start operations later this year, though this may be delayed by the merger.