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Hon Hai mum on Softbank alliance in Asia Pacific acquisition

Hon Hai mum on Softbank alliance in Asia Pacific acquisition

New rumors have surfaced regarding Asia Pacific Telecom’s search for potential merger suitors. Reportedly, Hon Hai (2317) is willing to partner with SBI Investments to acquire Asia Pacific private placement shares to obtain a 20% stake in Asia Pacific, become majority shareholder, and secure a controlling interest. However, Hon Hai remained silent Monday and had no comment. Yet, industry reports indicate that Softbank capitalization of their bid for Asia Pacific comes from Softbank Korea not Softbank Japan. If this is the case, the chances of Hon Hai allying itself with Softbank Korea are virtually nil.

Asia Pacific’s merger solicitation has become a three-way dogfight between Hon Hai, Taiwan Star, and Softbank. Asia Pacific has also changed their plans for their next stock float to a private placement of 826 million shares at NT$17.44 per share for a total capitalization of NT$14.41 billion. The industry believes that, even though subscribing to this private placement will net a 20% stake and title of largest shareholder, it is expensive and does not guarantee absolute dominance. Support from government shares must still be obtained.


Updated : 2021-02-27 06:47 GMT+08:00