Major M&A Activity In Asia: Hon Hai Proposes $2.49 Billion Acquisition Of Sharp

According to The Japan Times, Taiwan-based Hon Hai Precision Industry Co., Ltd.-ADR HNHPF has proposed acquiring Japan-based Sharp Corporation (ADR) SHCAY for 300 billion yen (approximately $2.45 billion).

The Japan Times noted that the acquisition offer represents a premium of approximately 50 percent to Sharp's current market value. However, the deal comes with a major string attached.

As part of the offer, Hon Hai is calling on Sharp's management team, including its President Kozo Takahashi, to step down and be replaced with Hon Hai's executives.

Shares of Sharp's Tokyo-listed equity surged higher by more than 7 percent following the report.