Wistron Corp (緯創), one of Apple Inc’s iPhone assemblers, yesterday said that it would subscribe to 3 billion yuan (US$429 million) of Luxshare Precision Industry Co (立訊精密) common shares to double down on its strategic partnerships with the maker of Apple’s iPod earbuds.
The announcement came after Wistron said on Friday last week that it would sell two of its Chinese subsidiaries — Wistron InfoComm Manufacturing (Kunshan) Co Ltd (緯新資通崑山) and Wistron Investment (Jiangsu) Co Ltd (緯創投資江蘇) — to Luxshare for 3.3 billion yuan.
The move came as a surprise to local electronics circles, as Luxshare has reportedly been seeking to share iPhone assembly orders with major assembler Hon Hai Precision Industries Co (鴻海精密).
“The [equity] investment is not directly tied to the sale of the Wistron subsidiaries,” a Wistron public relations official said by telephone. “These are two separate matters.”
The exact shape of the strategic partnership is still under discussion, the official said.
Wistron would hold a 0.81 percent stake in Luxshare after the transactions are completed via its four subsidaries, according to a company statement submitted to the Taiwan Stock Exchange.
Pegatron Corp (和碩), which also assembles iPhones, said in a filing with the Taiwan Stock Exchange that it would buy 11.38 million Luxshare shares for NT2.5 billion, with each share priced at NT$222.1.
Pegatron would see its holdings in the China-based firm rise to 0.57 percent once the transaction is completed.
Pegatron said the deal is just a financial investment.
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