Jones Day is advising Yulon Motor Co., Ltd on the deal.
Hon Hai Precision Industry, the world’s largest contract electronics maker, has decided to team up with Yulon Motor Co., one of the largest car makers in Taiwan, to set up a joint venture for car development.
Hon Hai, known as Foxconn in the global market, said Friday that it has signed an agreement with Yulon for the establishment of the vehicle development joint venture with a capital size of NT$15.58 billion.
According to Hon Hai, the new company will focus on car design and launch an open platform for car development.
For the development of the open platform, Hon Hai said the joint venture will involve a Yulon subsidiary, Hua-Chuang Automobile Information Technical Center Co. (HAITEC), and take advantage of Foxconn’s electronics and information device design and manufacturing expertise to strengthen its car development.
The Taiwanese electronics manufacturing giant will invest NT$7.94 billion for a 51 percent stake in the joint venture, while Yulon will inject NT$7.63 billion in in-kind investment using its assets in the open platform for car development to hold the remaining 49 percent.
The Jones Day team was led by Thomas Chen (Picture) and Raymond Wang, with the assistence of Yen-Chen Chen and Frances Shih.
Law Firms: Jones Day;
Clients: Yulon Motor Co Ltd;