Foxconn’s plans stalled after due diligence estimated Division E’s value at 1.5bil (US$1.7bil) to 2.5bil, lower than a previous estimate of 3.5bil. — Reuters
FRANKFURT: Foxconn’s two-year pursuit of a stake in a unit of German auto supplier ZF Group stalled last month due to a substantial mismatch in valuation expectations and a higher-than-estimated debt pile, according to documents seen by Reuters.
The findings from the Taiwanese firm’s due diligence were circulated days before ZF Group said in October that it would abandon its plans to spin off its powertrain technology unit, known as Division E.
