Hon Hai Precision Industry (TPE:2317) or Foxconn, through subsidiary Foxconn (Far East), agreed to acquire a 33.85% stake in Maxnerva Technology Services (HK:1037) for about HK$152.4 million, according to filings with the Taiwan and Hong Kong bourses on Tuesday.
Foxconn (Far East) will purchase 239 million shares from sellers FSK Holdings and FDG Fund at HK$0.6374 per share.
Following the transaction, Foxconn (Far East)'s direct stake in Maxnerva will increase to 40.46% from 6.61%.
The transaction triggers a possible mandatory conditional cash offer by Somerley Capital on behalf of the offeror to acquire all remaining issued shares and cancel all outstanding options of Maxnerva, valued at up to HK$272.3 million.
Foxconn's shares were down nearly 5%, while those of Maxnerva surged 64% in Tuesday's late-morning trade.