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By Faith Hung and Joyce Lee
TAIPEI, June 30 Hon Hai Precision, the
world's biggest electronics component maker, said on Monday it
had bought a 4.9 percent stake in South Korean IT services firm
SK C&C for 381 billion won ($376.59 million).
The move marks Hon Hai's second merger in less than two
months as part of a broader effort to diversify away from the
contract manufacturing business.
Hon Hai, the major supplier of iPhones and iPads, paid
155,500 won per share for the stake, which was for "long-term
investment", according to a company statement. It did not
SK C&C said in a separate regulatory filing that Chey
Tae-won, the chairman of SK Holdings and biggest
shareholder of SK C&C, was the seller.
This knocks down Chey's stake from 38 percent to 33.1
percent in SK C&C, through which he controls SK Holdings and
other units including the world's second-biggest chipmaker, SK
"Hon Hai is considering expanding its business portfolio into
information communication technology-centred services, and the
fact that they chose SK C&C as their partner is positive," an SK
Group spokeswoman said.
She declined to comment on Chey's plans for the proceeds as
it was a personal matter.
Hon Hai's parent company, Foxconn Technology Group, said
late in May it would buy a stake in Taiwanese mobile telecoms
operator Asia Pacific Telecom for T$11.6 billion ($390
million) in a deal that would expand its presence in Taiwan's
fledgling 4G telecoms market.
The news helped send Hon Hai stocks up 1.4 percent to T$100
about one hour into Taipei trading, a multi-year highest
intraday level. The main index jumped 0.8 percent.
Shares in SK C&C rose as much as 4.8 percent after the
filing, beating a 0.4 percent rise in the wider market.
(Editing by Stephen Coates)