Foxconn to buy majority stake at SoftBank Capital APAC for $600m

Workers stand at the gate of a Foxconn factory in the township of Longhua in Shenzhen, Guangdong province in this May 26, 2010 file photo. REUTERS/Stringer

Foxconn Technology Group, a subsidiary of Hon Hai Precision, is expected to close the acquisition of 54.5 per cent of SoftBank Group Capital APAC for $600 million, on March 1, to jointly make investments under the leadership of Foxconn.

The Softbank Group (SBG) unit will accordingly issue 96,268 new shares to Foxconn to create a joint venture.

“As a result, SoftBank Group Capital APAC is expected to become an equity method associate of SBG and no longer qualify as an SBG subsidiary,” the Japanese company said in a filing.

The synergy is expected to convey new insights into, as well as enable the parties to demonstrate their competitiveness in, investment activities, leveraged by SoftBank’s investment expertise and Foxconn’s global network.

The Taiwan-headquartered manufacturer of computer devices, which was the buyer of $3.5 billion Sharp and $22 million Microsoft Mobile Vietnam, is no stranger to the investment side.

Just last year, it participated in a spate of funding rounds for companies across Asia, including China’s ride-sharing app Didi Chuxing, India’s messaging app Hike Messenger, Hong Kong’s incubator Tink Labs and bike rental startup Mobike.

The JV is not the first investment partnership between the two Asian giants, as Foxconn is one of the investors in Softbank’s $100 billion Vision Fund. Apple, which is importing phones produced by Foxconn, is also a contributor.

Foxconn and Softbank are also JV partners of SBG Cleantech, along with India’s Bharti Enterprises, which was founded in 2015 to invest in renewable energy projects in India.

Since earlier this year, both firms have been actively eyeing expansions in the US, with Foxconn planning to build a $7 billion display factory, and Softbank looking to fund office-sharing startup WeWork with $3 billion and buy NYSE-listed Fortress Investment Group for $3.3 billion.

Also read:

Taiwan’s Foxconn invests $120m in Didi Chuxing, valuing ride app firm at $33.7b

SoftBank’s $100b fund on track to closing by end-Jan

Japan’s SoftBank to buy PE firm Fortress Investment for $3.3b

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.