The deal is reported to be valued at USD 750 million in total, including a USD 550 million inter-corporate loan that the parent company provided to Wistron India
The Tata Group has entered into a legally binding share purchase agreement with SMS InfoComm (Singapore) and Wistron Hong Kong in order to obtain a 100% equity stake in Wistron Infocomm Manufacturing (India). This agreement allows the Tata Group to formally become an iPhone assembler within the Apple supply chain.
“A significant accomplishment for us is the signing of the Share Purchase Agreement to gain Wistron InfoComm Manufacturing (India). With the government’s strong support, the EMS (Electronic Manufacturing Services) sector in India is expected to grow,” Randhir Thakur, CEO and Managing Director of Tata Electronics, said in a statement.
“Our goal is to improve our position in the manufacturing industry. I appreciate all of the Wistron team’s cooperation during this process,” he continued. On 27 October, the Tata Group formally revealed its acquisition plan for Wistron India, stating that it would pay USD 125 million for a 100 per cent ownership stake in the company’s assembly lines.
The deal is reported to be valued at USD 750 million in total, including a USD 550 million inter-corporate loan that the parent company provided to Wistron India. The Tata Group began producing a semi-finished iPhone SE model in India when it opened a casings facility in Hosur, Tamil Nadu, to join the iPhone supply chain.
The Tata Group will be able to begin producing iPhones from start to finish in India with the purchase of the Wistron unit, making it the first Indian company to join the ranks of Foxconn, Pegatron, Luxshare and Wistron in the iPhone manufacturing industry.