Hon Hai details plan for Toshiba unit

JEOPARDY:Woo said the Japanese conglomerate’s chip business would fall behind if it fails to make investments quickly, pointing to Samsung’s plans for a new facility

Taipei Times
Date: Sep 08, 2017
By: Bloomberg

Hon Hai Precision Industry Co (鴻海精密), also known as Foxconn Technology Group (富士康), is pressing its case to acquire Toshiba Corp’s memory chip unit, as the Japanese conglomerate struggles to complete the sale and avoid having its shares delisted from the Tokyo Stock Exchange.

Hon Hai has broad support for its offer from Apple Inc, Softbank Group Corp and Sharp Corp and is ready to proceed right away, Hon Hai spokesman Louis Woo (胡國輝) said.

He declined to specify how much the company is offering for the business, but people familiar with the matter have previously said it is bidding more than the two rival groups led by KKR & Co LP and Bain Capital LP.

“The bid speaks for itself. It is deal certainty,” Woo said.

“What this customer consortium means is that it will provide steady funds to Toshiba to advance their R&D [research and development]. At the same time, it’s a guarantee there will be more customers lining up to buy their products when they increase their capacity or have better products,” he added.    [FULL  STORY]

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