TAIPEI - Hon Hai (TW:2317) Precision Industry Co., Ltd., widely known as Foxconn (SS:601138), has announced a significant restructuring of its shareholding in several U.S.-based subsidiaries through its subsidiary Cloud Network Technology Kft. The move, executed on Monday, involved a total transaction amount of USD 344,978,065, aimed at optimizing the shareholding structure for long-term investment purposes.
The transaction included the disposal of common shares and equities of Cloud Network Technology USA Inc., Ingrasys Technology USA Inc., PCE Paragon Solutions (USA) Inc., NWE Technology Inc., NSG Technology Inc., and FII USA INC. These assets were then consolidated under Fii Holdings USA Inc., a related party, which resulted in a 100% ownership of the shares and equities by Fii Holdings USA Inc.
The restructuring did not generate any profit or loss for Hon Hai and was carried out based on the net equity value of the subsidiaries. The decision was made by the Board of Directors of Cloud Network Technology Kft., and there were no dissenting opinions reported among the directors.
This strategic move is part of Hon Hai's broader efforts to streamline its operations in the United States. The transaction did not involve any brokers or broker's fees, and no restrictive covenants or terms of delivery were reported. The transaction's concrete purpose was stated as an optimization of the shareholding structure, rather than a change in the business model.
The transaction was conducted with related parties, with Fii Holdings USA Inc. being the trading counterparty. As such, Hon Hai has disclosed the rationale for engaging with the related party, which was to adjust the shareholding structure to better reflect the company's long-term strategic interests.
The financial impact of the transaction on Hon Hai's total assets and equity attributable to owners of the parent is relatively modest, with the proportion to total assets at 1.00% and to owners' equity at 2.14%. The working capital as shown in the most recent financial statement was listed as NTD -241,579,390 thousands.
This announcement is based on a press release statement and reflects Hon Hai's commitment to transparency in its corporate governance practices. The company has not provided any additional details on the source of funds for the transaction or any other matters that need to be specified.
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