Hon Hai in talks to buy major stake in Asia Pacific Telecom: local media

Reuters News
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Posted: May 04, 2014 9:04 PM

By Michael Gold

TAIPEI (Reuters) - Hon Hai Precision Industry Co Ltd, a major maker of products for Apple Inc, is in talks to buy 22 percent of Taiwanese telecommunications firm Asia Pacific Telecom Co Ltd, local media reported on Monday, citing sources.

The deal will be worth T$11 billion to T$14 billion ($464.48 million), Taiwan's Commercial Times said, and will represent all of Asia Pacific Telecom's stock currently held by government-owned enterprises.

The move comes after Hon Hai's successful bid for a 4G license, which would allow it to compete for consumers on Taiwan's new high-speed mobile network, expected to be rolled out this year.

The Asia Pacific Telecom acquisition would be a boon to Hon Hai in its attempts to establish the 4G network, the report said.

A spokesman for Hon Hai said the company remains open to all forms of cooperation and hopes to start offering its 4G service as soon as possible, but had no comment on the Asia Pacific Telecom report.

Hon Hai, the world's largest contract manufacturer of electronic goods, has expressed its interest in becoming a more consumer-facing company and diversifying away from its pure manufacturing business model.

In addition to the 4G spectrum bid, it will also produce devices and applications for Mozilla's Firefox web browser.

(Reporting by Michael Gold; Editing by Ryan Woo and Christopher Cushing)