Taiwan’s Hon Hai Precision Industry, more widely known as Foxconn, is joining a bidding war to acquire Tongyang Magic, a South Korean appliance maker whose key business includes water purifier rental service.
According to news reports on Tuesday, Foxconn has recently hired a global securities firm as the deal advisor. The deal is expected to be carried out through Japan’s Sharp that the company acquired in April.
“Foxconn sees business synergies among its manufacturing prowess, Sharps’ brand power and Tongyang Magic’s marketing capability,” an industry source was quoted as saying by the Korea Economic Daily.
Tongyang Magic’s largest shareholder Glenwood Private Equity and NH Private Equity, both based in Korea, put the firm up for sale recently. The preliminary bidding is scheduled to be held in November.
Korean food and entertainment giant CJ Group is also hinting at its intention to participate in the bidding. Some Chinese investors are also said to have keen interest in the deal.
By Lee Ji-yoon (firstname.lastname@example.org