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Hon Hai acquires stake in British company

Hon Hai acquires stake in British company

Taipei, Oct. 27 (CNA) Hon Hai Technology Group (????), the world's largest contract electronics maker, has acquired a stake in Bamboo Distribution Ltd., a leading mobile phone recovery, recycling and distribution company in the United Kingdom. In a statement posted on its website Monday, Bamboo Distribution said Hon Hai, also known as Foxconn Technology Group in the world market, had taken a 20 percent share through the Taiwanese group's subsidiary. Hon Hai's decision took into account a number of strategic factors such as the U.K. firm's knowledge of buy-back, reconditioning, distribution and recycling of mobile devices, Bamboo Distribution said. Hon Hai has also acknowledged the U.K. company's current and projected growth expectations, according to the statement. However, Bamboo Distribution did not disclose the financial terms of the deal. In the statement, Managing Director of Bamboo Distribution Juney Mistiki said Hon Hai has recognized the value the British firm was already providing to its customers. "Following extensive talks with Foxconn, we demonstrated why we were the right choice to help drive its expansion into Europe," Mistiki said. "Our customers will immediately benefit from the direct access we now have to one of the most successful electronics manufacturing companies in the world." In April, Hon Hai and Bamboo Distribution set up a partnership to establish maintenance offices for mobile devices in the U.K. and elsewhere in Europe. With Hon Hai's investment, Bamboo Distribution said, the bilateral links are expected to become stronger. Through closer cooperation, the two companies are planning to set up a distribution center to provide services in the U.K. and other parts of Europe, Bamboo Distribution said. Since the acquisition, Hon Hai Vice President Paul Chou has joined Bamboo Distribution's board of directors, the British company said. Bamboo Distribution, founded in 2009, has annual revenue of about 30 million English pounds (US$45.9 million), and that figure is expected to increase to 105 million English pounds by 2017, with its partnership with Hon Hai. The number of Bamboo Distribution employees is also expected to double to 100 by then, the company said. Hon Hai has been eager to enter the mobile phone recovery, recycling and distribution market, teaming up earlier this year with Chinese partners to enter that market segment in China. Last year, its subsidiary FIH Mobile Ltd acquired a 30 percent stake in U.S.-based CExchange. (By Jalen Chung and Frances Huang)