Foxconn sells stake in Taiwan Fixed Network to TWM's subsidiary
Mar 20, 2007
Foxconn (Hon Hai Precision Industry) on March 19 announced the sale of its 70 million stock shares in Taiwan Fixed Network (TFN), equivalent to a 1.08% stake, to Tahsing International Telecommunications (TIT), a wholly owned subsidiary of Taiwan Mobile (TWM), at a price of NT$8.30 (US$0.25) per share, resulting in a capital gain of NT$301 million.
Foxconn has sold all of its stake in TFN, a move in response to TWM's plan to increase its stake in TFN by 41-90% through TIT's acquisition of TFN shares at a public offer of NT$8.30 per share, according to Taiwan bourse sources. Foxconn is the second corporate shareholder to sell its stake in TFN, on March 16 Continental Engineering sold its 2.17% stake in TFN to TIT , the sources pointed out.
TWM holds a 9.95% stake in TFN at present and hopes to increase the stake ratio to at least 50% by April 11 through TIT's acquisition, the company indicated. Further additional corporate shareholders are expected to release their respective stakes in TFN to TIT, TWM noted.