Quick Take: Foxconn to Buy Stake in Small Oil Producer
Apple Inc.’s major supplier Foxconn Technology Co. Ltd. has agreed to acquire a 24.37% stake in a Hong Kong-listed crude oil producer for HK$1.49 billion ($190 million).
IDG Energy Investment Group Ltd., which had operated hotels and restaurants until July 2016, became an energy company after Titan Gas Technology Investment Ltd. injected upstream crude oil assets in a reverse takeover. IDG is currently exploring crude oil in Inner Mongolia, and has announced a plan to acquire a shale-gas basin in the U.S.
IDG said in a statement dated Wednesday that five units under Foxconn Technology have agreed to subscribe to a total of 1.49 billion IDG shares at HK$1 per share.
IDG said its business development and operation “will benefit from Foxconn Technology’s global network, customer resources, public relationship as well as its leading experience of operational excellence.”
Also, the share sale will “provide (IDG) with immediate funding and the shareholders’ base of the company will be broadened,” the statement added.
Foxconn will become IDG’s second-largest shareholder after Titan should the deal complete.
It is not clear why Foxconn would invest in a hydrocarbon producer. Foxconn could not be reached for comment.
The deal will need IDG’s shareholder approval to be final.
Contact reporter Aries Poon (email@example.com)
Apr 16 11:48 PM
Apr 16 08:51 PM
Apr 16 06:48 PM
Apr 16 12:30 PM
Apr 15 07:22 PM
Apr 15 06:56 PM
Apr 15 06:49 PM
Apr 15 03:43 PM
Apr 14 07:38 PM
Apr 13 10:04 PM
Apr 13 07:04 PM
Apr 13 07:02 PM
Apr 13 07:00 PM
Apr 13 02:24 PM
Apr 12 07:07 PM
- 1Cover Story: Tech Giants Bet on the Smart-Car Revolution
- 2Ling Huawei: Huarong Can’t Be Treated Like a Normal Company in Bankruptcy Restructuring
- 3Beijing Exhibitions: Everything You Need to See in April
- 4Update: Alibaba Fined $2.8 Billion in Landmark China Antitrust Ruling
- 5Weekend Long Read: Zhou Xiaochuan on the Key Questions Facing China’s Carbon Ambitions (Part I)
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas