Foxconn invests $190mn in IDG Energy

By BizClik Admin

Foxconn Technology, Taiwan-based multinational electronics manufacturer also known as Hon Hai Precision, has announced it will spend $190mn on a 24.4% stake in Hong Kong based oil and gas company IDG Energy Investment.

This will be Foxconn’s first move into the natural gas sector. IDG is mainly involved in the exploration and production of crude oil in mainland China.

The 24.4% stake makes Foxconn the second-largest shareholder in IDG after Titan Gas, which will see its share reduced from 48.62% to 36.77% after the deal.

See also:

Google launches AI research centre in China

China’s Russian energy acquisition spree to continue

December edition of Business Review Asia

IDG, which saw its shares rise 31% on Thursday as the deal was announced and ended the day up 8%, will use the proceeds from Foxconn’s investment to invest in the natural gas industry along its value chain.

Foxconn Chairman Terry Gou has said the company has been hoping to diversity from electronics, according to the South China Morning Post.

IDG has stated: “The new shareholder, as a world class multinational group and one of the world’s largest electronics manufacturers, can bring strategic value adding and unique resources to the company… the company expects that its business developments will benefit from Foxconn Technology’s global network, customer resources, public relationship as well as its leading experience of operational excellence.”


Featured Articles

Nirvik Singh, COO Grey Group on adding colour to campaigns

Nirvik Singh, Global COO and President International of Grey Group, cultivating culture and utilising AI to enhance rather than replace human creativity

How Longi became the world’s leading solar tech manufacturer

On a mission to accelerate the adoption of sustainable energy solutions, US$30 billion Chinese tech firm Longi is not just selling solar – but using it

How Samsung’s US$5billion sustainability plan is working out

Armed with an ambitious billion-dollar strategy, Samsung is on track to achieve net zero carbon emissions company-wide by 2050 – but challenges persist

UOB: making strides in sustainability across Southeast Asia


Huawei smartwatch goes for gold with Ultimate Edition


How IKEA India plans to double business, triple headcount

Corporate Finance