Status:  Clearance; Mitigation

 

Acquirer:  FIT Hon Teng Limited (Cayman Islands; Hong Kong SAR, China; Taiwan)

Acquired:  Belkin International, Inc. (US)

Value:  Approximately US$866 Million

Industry:  Technology; Consumer Electronics


UPDATE:  Fit Hon Teng Limited (“Company”) disclosed in a security filing that “the Merger Consideration has been reduced from US$866 million to US$850 million . . . as certain additional costs will be incurred by the Company to comply with ongoing compliance requirements in respect of the Merger that are expected to be imposed by CFIUS.”  (See FIT Hon Teng Ltd., Amendments to the Merger Agreement in Relation to the Acquisition of Belkin International, Inc. By Way of Merger, HK Exchange filing, Sept. 6, 2018.)  “The merger was completed on 20 September 2018 in accordance with the terms of the merger agreement.”  (See FIT Hon Teng Ltd., Acquisition of Belkin International, Inc., by merger, HK Exchange Filing, Sept. 21, 2018, machine translation of Chinese language original.)


Posted July 13, 2018

Status: Upcoming/New Filing

On March 26, 2018, FIT Hon Teng Limited, a Cayman Islands company based in Taiwan, listed on the Hong Kong Stock Exchange (stock code: 6088), and a majority held subsidiary of Taiwan technology manufacturing company Hon Hai Precision Industry Co., Ltd. (the Foxconn Technology Group, see Group Profile page here), announced the signing of a merger agreement for the acquisition by FIT Hon Teng of Belkin International, Inc., a US technology company that sells consumer connectivity products under the brands Belkin, Linksys, WeMo, and Phyn.  (See FIT Hon Teng Ltd. HK Exchange filing, Discloseable Transaction in Relation to the Acquisition of Belkin International, Inc. by Way Of Merger, Mar. 27, 2018; see also Belkin International Press Release, Foxconn Interconnect Technology and Belkin International Announce Transaction to create Global Consumer Electronics Leader, Mar. 26, 2018.)  FIT Hon Teng Ltd. (known as “Foxconn Interconnect Technology”) focuses on “electronic and optoelectronic connectors, antennas, acoustic components, cables and modules” for various applications and has “engineering design and analysis teams in Taiwan, China and the USA.” (FIT Hon Teng website, Company Profile web page.)  According to Hong Kong Exchange regulatory filing by FIT Hon Teng Ltd., the parties have executed a merger agreement whereby a merger subsidiary of FIT Hon Teng will merge with and into Belkin International and Belkin International will be the surviving corporation and become a direct wholly-owned subsidiary of FIT Hon Teng for merger consideration of US$866 million.   (See FIT Hon Teng Ltd. HK Exchange filing, Discloseable Transaction in Relation to the Acquisition of Belkin International, Inc. by Way Of Merger, Mar. 27, 2018.)  The approval of CFIUS is a condition of closing the merger.  (Id.)  If CFIUS approval was not obtained by June 25, 2018, the parties had the option to terminate the merger agreement.  (Id.)  However, on June 22, 2018, the parties “agreed to enter into an amendment agreement on June 20, 2018 to change the reference to ‘June 25, 2018’ in the above provision in the Merger Agreement to ‘August 15, 2018’.”  (FIT Hon Teng Ltd., HK Exchange filing, Amendment to the Termination Provision in Relation to the Acquisition of Belkin International, Inc. by Way of Merger, June 22, 2018.)