[HONG KONG] Taiwan's Hon Hai Precision Industry Co plans to spin off its Foxconn Interconnect Technology unit in a Hong Kong initial public offering worth at least US$1.5 billion, IFR reported on Thursday, citing people close to the deal.
The listing of FIT, as the unit is called, is planned for the second quarter of 2016, with funds from the deal to be used to expand its overseas business and develop new technologies, added IFR, a Thomson Reuters publication. FIT makes electronic connectors and cables.
Hon Hai didn't immediately respond to a Reuters request for comment on the FIT IPO plans.
Bank of America Merrill Lynch, China International Capital Corp (CICC) and Credit Suisse were tapped to work on the deal, IFR said.