Hon Hai Group's subsidiary buys Asia Pacific Telecom shares
Central News Agency
2014-05-26 11:23 PM
Taipei, May 26 (CNA) Ambit Microsystems Corp., a subsidiary of Hon Hai Precision Industry Co., signed a letter of intent Monday to purchase over 70.5 percent of the private placement shares of Taipei-based Asia Pacific Telecom Co. The deal, at a cost of nearly NT$11. 66 billion (US$387.34 million), marks Hon Hai's acquisition of one of Taiwan's major telecommunication services providers, making it a threatening player in the fourth generation telecommunication sector. Both Hon Hai and Asia Pacific announced the cooperation relationship, respectively, with Hon Hai pointing out that Ambit, of which Hon Hai holds more than 99 percent shares, will buy Asia Pacific's private stock offerings by 582,888,468 shares at a price of NT$20 per unit. Ambit, an operator of fourth generation mobile broadband telecommunication services, will play the role as a strategic investor in Asia Pacific Telecom, which planned to release 826 million private placement shares, Hon Hai said. Under the letter of intent, Ambit will be able to purchase the remaining shares at the same price within one year after Asia Pacific stockholders approve the plan to launch private stock offerings, according to Hon Hai. For its part, Asia Pacific Telecom said Hon Hai is expected to complete by June 29 the purchase, which will allow the electronics manufacturer to hold an around 14 percent stake in the company, becoming its largest shareholder. At the same time, the telecoms company will merge with Ambit in a way of exchanging stocks, with Ambit set to be disbanded after the merger, the company said. Asia Pacific Telecom, founded in 2000, provides telecommunication services to personal and business users primarily in Taiwan. Its services include broadband fixed line, broadband mobile communication, and broadband Internet services. (By Jalen Chung, Esme Jiang and Elizabeth Hsu)
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