TAIPEI - Hon Hai (TW:2317) Precision Industry Co., Ltd., widely known as Foxconn (SS:601138), has reported through a regulatory filing that its subsidiary, PCE Paragon Solutions Kft., has increased its investment in Foxconn EV Technology Inc. by acquiring additional shares. The transaction, which occurred between July 10 and December 20, 2024, involved the purchase of 16,000 shares at a price of USD 4,000 per unit, totaling USD 64.6 million.
This acquisition raises PCE Paragon Solutions Kft.'s cumulative shareholding to 100,900 shares, which equates to a 79.355% ownership stake and an investment value of USD 403.6 million. The transaction did not involve any cash investment but was part of a capital increase within the subsidiary. There are no restrictions on the rights associated with these shares.
In a separate but related transaction, Foxconn EV Technology Inc. has obtained full ownership of Foxconn EV System LLC with a total investment amount of USD 55 million. This deal, spanning from November 20 to December 20, 2024, also did not involve cash but was part of a capital increase.
The board of directors made the decision for both transactions, which were conducted with related parties, following company procurement authorization guidelines. The investments are intended for long-term strategic purposes. There were no dissenting opinions from the directors regarding these transactions.
Following these acquisitions, the ratio of securities investment to the total assets of Hon Hai stood at 0.3770%, and the ratio to owners' equity was at 0.8091%. The company's operating capital was listed as NTD -241,579,390,000.
These moves are part of Hon Hai's broader strategy to strengthen its position in the electric vehicle (EV) technology space. Both transactions were conducted without the involvement of brokers or payment of broker's fees. The source of funds for these investments was reported as private capital.
As of the time of the press release, there have been no changes to the business model of either entity as a result of these transactions. The information is based on a press release statement and is provided by RNS, the news service of the London Stock Exchange (LON:LSEG).
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