Hon Hai Precision Industry Co., Ltd. (2317) ('Hon Hai') and Siliconware Precision Industries Co., Ltd. (2325) ('SPIL') will enter into a Strategic Alliance and Share Exchange Agreement to finalize the strategic alliance relationship. The alliance will not only provide customers with the best integrated service program through future collaboration on technology and business, but also establish a vertical integration of the electronics industry through this alliance.

Since Hon Hai and SPIL are all listed companies in Taiwan, the parties will exchange shares in accordance with Article 156.8 of the Company Act as well as the Strategic Alliance and Share Exchange Agreement in order to form this strategic alliance and business collaboration to strengthen their competitiveness through.

The parties agree to use market value method to calculate the share exchange ratio, which is 1 common share of Hon Hai Share for 2.34 common share of SPIL common share. After Hon Hai and SPIL exchange of shares, Hon Hai will hold 840,600,000 SPIL's shares, accounting for 21.24% shares of SPIL, post capital increase; and SPIL will hold 359,230,769 of Hon Hai shares, accounting for 2.20% shares of Hon Hai, post capital increase.

After establishing the alliance of the parties, Hon Hai's market competitiveness will be strengthened through the outcome of the vertical integration, which will help the company enhance its long term operation.

Hon Hai Precision Industry Co. Ltd. published this content on 09 June 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 12 June 2017 10:28:27 UTC.

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