Market Chatter: Foxconn’s Chinese Arm Buys Stake in Tsinghua Unigroup During $9 Billion Bailout
Summary
Hon Hai Precision Industry or Foxconn Technologys (2317) Shanghai-listed unit Foxconn Industrial Internet (601138) took part in the $9 billion bailout of Chinese semiconductor conglomerate Tsinghua Unigroup, Bloomberg News reported Wednesday, citing people familiar with the matter.Unigroup completed its bankruptcy restructuring and is now held by a consortium of its creditors, according to earlier reports.A reorganization of Unigroup resulted in a change in ownership of its subsidiaries including Unigroup Guoxin Microelectronics (002049) and Unisplendour (000938).Sources told Bloomberg that Foxconn Industrial invested in Unigroup through a fund that it formed with investment house Wise Road Capital.The fund reportedly paid 5.3 billion yuan ($788 million) for a minority stake in Unigroup.Foxconn has yet to submit an application for approval by Taiwans investment commission, which oversees sensitive deals, Bloomberg said.The investment by Foxconn, which assembles iPhones for US-based Apple, could raise concerns as tensions between Beijing and Taipei escalate, the report said.