HONG KONG (Standard&Poor's) March 31, 2016--Standard&Poor's Ratings Services said today that its ratings and outlook on Taiwan-based technology company Hon Hai Precision Industry Co. Ltd. (A-/Stable/--; cnAA/--) are not affected by its investment in Japan-based Sharp Corp. We believe the investment will not materially weaken Hon Hai's leverage or financial risk profile, given Hon Hai's sizeable net cash position. Hon Hai and Sharp announced on March 30, 2016 that Hon Hai would acquire a 44.55% stake and convertible preferred stock in Sharp with total consideration of ¥295 billion (about New Taiwan dollar (NT$) 85 billion) in a private placement completed before Oct. 5, 2016. Hon Hai's affiliates will acquire a further 21.45% stake in Sharp in
