Foxconn is writing a $390 million cheque for the Taiwanese mobile telecoms operator Asia Pacific Telecom as part of a cunning plan to expand into the 4G telecoms market.
Foxconn and Asia Pacific are expected to merge fully via a share swap once the small print is worked out by June 20.
The world's largest contract manufacturer of electronic goods wants to expand its operations to include software, 4G services and cloud computing. It also has a licence to operate part of Taiwan's 4G spectrum.
It will take a jolly long time for Foxconn to make any dosh from 4G. Analysts have done the numbers and think it will take at least seven years for the outfit to make any real profits.
Earlier this month, Asia Pacific had said it would soon decide soon on a merger with either Foxconn or Chinese noodles maker Ting Hsin International. We are not sure how many people would opt for 4G Noodles but it looks like they decided Foxconn would be a better bet.
Foxconn will buy Asia Pacific under its subsidiary company Ambit Microsystems, the unit responsible for its future 4G deployment, the stock exchange statement said. Ambit will be dissolved and the new company will operate under the name Asia Pacific Telecom.