The board of Taiwan's Asia-Pacific Telecom has approved the company's planned merger with Hon Hai subsidiary Ambit Microsystems.
The companies will now proceed with a share-swap merger, which is expected to take effect at the end of June 2015, the China Postreported.
Post-merger, Ambit will be combined into APT, while Hon Hai will hold a 23.14% stake in the new entity.
Ambit bought a 15% stake in APT last month as a precursor to the merger. At the time, it was reported that APT will also seek an international investor to hold around 30% of the combined company, with Softbank one of the most likely contenders.
Both Ambit and APT acquired LTE spectrum during Taiwan's recent $4 billion 4G auction, and plan to merge to join forces on a 4G rollout. The companies are already planning to trade blocks of 4G spectrum, but the deal requires regulatory approval.
The report cites APT CFO Hong Long-tsu as stating that the company is seeking to launch its 4G services towards the end of this year.