Foxconn, the China-based electronics contract manufacturer, is paying $600m in return for a 54.5% stake in investment fund SoftBank Asia Capital, currently wholly-owned by Japan-based telecoms firm SoftBank, LiveMint reported on Saturday.
The transaction will turn SoftBank Asia Capital into a joint venture. The deal is expected to close on March 1, at which point Foxconn will take over the management of the fund.
Foxconn said it hopes to merge SoftBank’s investment expertise with its own global presence as well as advanced manufacturing and technology services know-how.
The two corporates previously partnered when Foxconn committed cash to the $100bn SoftBank Vision Fund in January 2017.
Foxconn provided a statement to online publication TechCrunch stating: “The establishment of this joint venture is in line with Foxconn’s overall investment strategy and will enable the company to explore and tap new investment opportunities that will drive Foxconn’s sustainable business development.”