Hon Hai Precision Industry Co has announced that its subsidiary Foxconn Singapore Pte Ltd has acquired approximately 351.73 million common shares in its India subsidiary, Foxconn Hon Hai Technology India Mega Development Private Limited, for $37.2 million.
Foxconn has been significantly expanding its presence in India, driven both by demand from Apple and its own 3+3+3 strategy, which seeks to integrate three emerging industries, three core technologies and three smart platforms to support the Taiwanese contract manufacturer’s long-term, sustainable growth.
A substantial portion of this investment is expected to flow into Tamil Nadu, where the company currently has its largest footprint. The Taiwanese firm has also been diversifying its operations, with one of its largest global units coming up in Karnataka and another large facility already operational in Telangana.
The purpose of the share acquisition has been listed as a long-term investment, funded through private capital. The company said the transaction does not involve any change in its business model and no dissenting opinions were recorded from directors regarding the deal.
Following the transaction, Foxconn Singapore Pte Ltd holds 23.18 billion shares in the India unit, with a cumulative value of $2.82 billion.
