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. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
America's super-secret X-37B plane returns to Earth after nearly TWO YEARS aloft
674 days in space for US Air Force's mystery orbital vehicle
10 Top Tips For PRs Considering Whether To Phone The Register
You'll Read These And LOL Even Though They're Serious
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.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.