Foxconn unit writes off another $40 million on Snapdeal investment

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Foxconn unit writes off another $40 million on Snapdeal investment

Foxconn Technology Group has announced another write-down of 40% of its $200 Mn investment in ecommerce company Snapdeal, which is owned and operated by Jasper Infotech.

Earlier in August 2017, Foxconn, via its FIH Mobile unit, wrote off 80% of its investment after FIH Mobile “identified an impairment indicator from a recent proposed acquisition of JIPL in the market, from which the estimated value of JIPL is significantly below its carrying value.” JIPL is  Jasper Industries Private Limited.

Further, Foxconn had registered impairment losses of around $160 Mn for its investment in Jasper Infotech for six months and the loss period ended June 30, 2017.

In its 2017 annual report, FIH Mobile has said that the company had come to the conclusion that its entire $200 Mn investment in Jasper Infotech, which was first announced in September 2015, can’t be recovered.

“As the recoverable amount of the investment in Jasper Infotech is minimal, the Group decided to make a further $40 Mn impairment loss as on December 31, 2017. As a result, JIPL represented no more shares of the Group’s total assets as on December 31, 2017,” the FIH 2017 annual report stated.