TAIPEI - Hon Hai (TW:2317) Precision Industry Co., Ltd., widely known as Foxconn (SS:601138), has disposed of its entire stake in Vizio Inc., selling 4,409,126 common shares at a unit price of USD 11.5, totaling USD 50,704,949. The transaction occurred on Wednesday, with Walmart (NYSE:WMT) Inc. as the trading counterparty, which has no relation to Foxconn.
According to the press release statement issued by Foxconn's subsidiary, Foxconn Assembly Holding Corporation, the sale resulted in realized gains of USD 26,934,861, which will be included in the undistributed earnings of the current year. The gains are part of a financial restructuring as Foxconn recognized USD 10,180,181 reclassified from other equity in fiscal year 2023 and USD 16,754,680 classified as other comprehensive income for fiscal year 2024.
The sale of the Vizio shares is part of Foxconn's investment realization strategy. The company disclosed that there are no restrictive covenants in the contract, nor were there any dissenting opinions from directors regarding the transaction. The disposal did not involve any brokers or broker's fees, and there was no need for a board of directors resolution or ratification by supervisors or approval by the Audit Committee.
Following the transaction, Foxconn now holds zero shares in Vizio Inc., which also reflects a zero percent shareholding percentage. The company's current ratio of securities investment to the total assets and equity attributable to owners of the parent is now 0.00%, as per the latest financial statement. This move has left Foxconn with a working capital of negative thousand NTD-241,579,390.
This strategic divestment by Foxconn does not involve a change in the business model, nor does it have any associated dissenting opinions from directors or related party transactions. The transaction was conducted through a standard sale process, and the price was determined based on current market conditions.
The press release does not disclose the specific reasons behind the decision to sell the Vizio shares or any plans for the proceeds from the sale. It also confirms that there was no involvement of a certified public accountant (CPA) issuing an opinion on the transaction.
Information about this transaction is based on a press release statement and does not include any additional commentary or speculative insight.
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