Foxconn Precision Electronics, the cellphone manufacturing arm of — guess who? — Foxconn, is for sale.
Well, actually it has been sold.
Allow me to explain. Hon Hai, which trades under the Foxconn name, has myriad subsidiaries. Some of those subsidiaries have other subsidiaries. Despite the growing handset market, FPE’s parent, Foxconn International Holdings, has been losing money — $218 million last year alone. So despite sales of $6.63 billion last year, FPE has been sold to China Prime Rich Holdings, a wholly owned subsidiary of — wait for it — Hon Hai.
If that wasn’t awkward enough, the sale price was HK$550.4 million, which in US currency is $70.7 million.
In other words, Foxconn bought from Foxconn an entity the size of Celestica for about four days’ worth of revenue. No word yet what the company directors paid themselves for what must have been an exhausting maneuver.
Only in China.