Feeds

Foxconn devours $390m stake in Taiwanese 4G mobe network

Tasty slice of mobile broadband market ahead of planned slurp

Internet Security Threat Report 2014

Apple supplier Foxconn is planning to buy a stake in Taiwanese mobile operator Asia Pacific Telecom for $390m to gobble up more of the country’s early 4G market.

Foxconn, which is listed on the Taiwan stock exchange as Hon Hai Precision Industry, said in a filing with the market that its subsidiary Ambit Microsystems would pay $0.66 per share for just under 583 million stocks in the telco. The plan is for Ambit and Asia Pacific to then merge fully via a share swap by the end of June.

Foxconn already has a licence for a part of Taiwan’s 4G spectrum and was planning to deploy its network through Ambit. However, if this deal goes ahead, the Ambit name will be discarded and it will operate its new network through Asia Pacific Telecom.

The exact swap ratio for the merger deal will be calculated based on Ambit’s book value per share and the 20-day average stock price ahead of the agreement for Asia Pacific, or a price of $0.66 a share if the average price fell below that, according to the filing.

“This condition is under the assumption that there is no significant difference between the results of Ambit's due diligence on APT, as well as APT's actual operations,” the firm said.

Asia Pacific’s 10MHz block of spectrum will add to Foxconn’s 20MHz to give it a much better chance of competing in the market. Taiwan’s biggest mobile operator Chunghwa Telecom is said to have around 35MHz of bandwidth, while Far EasTone and Taiwan Mobile Company hold 30MHz each.

Beancounters at IDC said last year that they expected around 600,000 subscribers to initially switch from 3G to 4G when providers start offering the service, jumping to around 8.1 million users by 2015. Chunghwa Telecom is expected to become the first carrier to start services in the second half of this year. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.