Hon Hai Precision Industry Co (鴻海精密) has invested in local cell-tissue banking and cell therapy company Bionet Corp (訊聯生物科技) through the purchase of NT$100 million (US$2.86 million) in Bionet shares, a Bionet official said.
The purchased shares represent 8.6 percent of Bionet’s outstanding shares, Bionet chairman Chris Tsai (蔡政憲) said at a media briefing yesterday.
The two companies plan to invest an additional NT$200 million in a joint venture called Conn Lian (康聯生醫), aimed at developing next-generation health care focused on predictive, preventive, personalized and participatory medicine, Tsai said.
Bolstered by the announcement, Bionet stocks rose limit-up to NT$43.40 on the GRETAI Securities Market. Hon Hai shares rose 5.01 percent to NT$75.5 on the Taiwan Stock Exchange.
Hon Hai’s latest announcement followed the signing on Wednesday of a global GreenCert agreement with IBM, Enterprise Information Management Inc and C-Lock Technology Inc. The companies will jointly introduce greenhouse gas emission measurement technology.
“Hon Hai will take 50 percent ownership of the newly formed company, while Bionet and the rest of the investment consortium will each take 22.5 percent and 27.5 percent,” Tsai said.
Tsai said that in order for Bionet to increase its scale of operations, it urgently needed sizable funding and a partner who understands the importance of biotechnology.
Bionet therefore approached Hon Hai as a first choice investment partner roughly one year ago, Tsai said.
“After consulting with numerous international biotechnology firms, Hon Hai has chosen to invest in Bionet due to its superior technology management and operational capabilities. This collaboration marks the nation’s first real step by a large conglomerate to actively invest in genetic engineering and stem cell research,” David Wu (吳啟誠), head of Hon Hai medical group, said at the same briefing.
In separate news, Wu said Hon Hai chairman Terry Gou (郭台銘) and his wife were both well and anticipated the arrival of their first baby sometime in May.
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