Taiwan’s Foxconn Technology Group will reportedly spend TWD11.6 billion (USD390 million) to acquire a stake in local multi-service operator Asia Pacific Telecom (APT), according to Reuters. It is understood that Foxconn, which is registered on the Taiwanese stock market under the name Hon Hai Precision Industry, will pay TWD20 a share for a total of 582.9 million shares via a private placement. Following this, both APT and Asia Pacific and Foxconn unit Ambit Microsystems Corp are then expected to merge fully via a share swap, pending agreement on terms, by 20 June 2014.
As previously reported by CommsUpdate, with both Foxconn and Ting Hsin International Group said to have made offers to acquire a stake in APT earlier this month, this latest announcement falls in line with the latter’s aim of making a decision on a merger partner by the end of May 2014. Both Foxconn and APT were successful in acquiring 4G-suitable spectrum in the state’s October 2013 spectrum auction, with Ambit Microsystems Corp claiming a total of 20MHz (‘A3’ block in the 700MHz band and ‘B3’ block in the 900MHz band) for TWD9.18 billion, while APT paid TWD6.415 billion for a 10MHz block in the 700MHz band (block ‘A1’).