TAIPEI – Hon Hai (TW:) Precision Industry Co., Ltd., widely known as Foxconn (SS:), has announced through its subsidiaries, Foxconn EV Singapore Holdings Pte. Ltd. and Foxconn EV Netherlands Holdings B.V., the acquisition of shares in various entities as part of a strategic investment initiative. The transactions, which took place on Monday, involve the purchase of shares in Foxconn EV Netherlands Axle System B.V. and ZF Foxconn Chassis Modules GmbH.
The total investment for acquiring Foxconn EV Netherlands Axle System B.V. shares amounted to EUR 19,056,008, securing a 100% stake in the company for Foxconn EV Netherlands Holdings B.V. This move is aimed at long-term investment, with no broker fees involved and no dissenting opinions from directors reported.
In a separate transaction, Foxconn EV Netherlands Holdings B.V. also acquired a 50% stake in ZF Foxconn Chassis Modules GmbH from ZF Friedrichshafen AG, with a total monetary amount of EUR 291,069,767 for common shares. Additionally, a single Class A preferred share was purchased for EUR 60,000,000. The preferred shares come with a dividend annual rate of 3 months SOFR+2%. The terms of the preferred shares state that they are convertible, with the actual conversion price to be determined according to the provisions of the Investment Agreement.
The investment in ZF Foxconn Chassis Modules GmbH also indirectly secured a 50% stake in ZF Chassis Modules (Shanghai) Co., Ltd., an enterprise in mainland China, with the investment amount not exceeding EUR 24,275,219.
These investments are part of Foxconn’s broader strategy to expand its footprint in the electric vehicle (EV) sector and are funded through private capital. The company’s board of directors decided on these transactions, which are described as long-term strategic investments. There were no dissenting opinions from directors, and the transactions did not involve any change in business model.
The investments represent a small fraction of Foxconn’s total assets and equity attributable to owners of the parent, with the ratio to total assets being 0.39% and to shareholder’s equity 0.84% for the Foxconn EV Netherlands Holdings B.V. transaction, and 0.38% and 0.81% respectively for the ZF Foxconn Chassis Modules GmbH investment.
This information is based on a press release statement issued by Hon Hai Precision Industry Co., Ltd. and does not include any promotional content or subjective assessments. The aim of the report is to provide a factual account of the company’s recent investment activities.
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