Foxconn invests $190mn in IDG Energy
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.
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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.”
