The deal, at a cost of nearly NT$11. 66 billion (US$387.34 million), marks Hon Hai's acquisition of one of Taiwan's major telecommunication services providers, making it a threatening player in the fourth generation telecommunication sector.

Both Hon Hai and Asia Pacific announced the cooperation relationship, respectively, with Hon Hai pointing out that Ambit, of which Hon Hai holds more than 99 percent shares, will buy Asia Pacific's private stock offerings by 582,888,468 shares at a price of NT$20 per unit.

Hon Hai beat rivals including Ting Hsin International Group, another new entrant to Taiwan's mobile market which had proposed a merger of Asia Pacific Telecom with its Taiwan Star unit. Ambit and APT expect to reach a decision on merger terms by June 20, the companies said.