By: Huang Chiao-wen and Frances Huang
Taipei, May 31 (CNA) The Investment Commission said Tuesday that it has issued approval to Hon
Hai Precision Industry Co. (鴻海) to acquire a majority stake in Japan’s financially struggling Sharp Corp.
Hon Hai signed an agreement in early April to acquire a 66 percent stake in Sharp for about US$3.5 billion to kick off a process of financial restructuring of the Japanese firm. Through the acquisition, Hon Hai will become the largest shareholder of Sharp.
The commission’s approval came after a review of the application submitted in late April by Hon Hai, the world’s largest contract electronics maker, according to the government agency.
The commission said that after scrutinizing Sharp’s financial condition and renewing talks on the value of the deal, Hon Hai inked the agreement for a fair acquisition price. The commission said that the deal will be the fourth-largest outbound investment from Taiwan. [FULL STORY]