Hon Hai to buy Japanese LCD venture: newspaper

Taipei Times | December 28, 2010
Hon Hai Precision Industry Co (鴻海精密) shares gained in early Taipei trading after a Nikkei Shimbun report that the world’s largest contract manufacturing service firm for electronics and communication products plans to acquire control of a LCD venture between Japan’s Hitachi Ltd and Canon Inc for ￥100 billion (US$1.2 billion).
The stock advanced 0.4 percent to NT$117.50 as of 9:04am. The stock ended unchanged at NT$117 yesterday.
The companies are in final negotiations for Hon Hai to acquire ￥50 billion in each of two private offerings from the venture over the next two years, dropping Hitachi’s stake to 30 percent from 75.1 percent, according to the report.
The unit, Hitachi Displays, will use the funds to build a plant in Japan that will start operations in 2012, doubling the unit’s capacity, the report said.
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