Far Eastern Group (遠東集團) yesterday welcomed a ruling by the Supreme Administrative Court regarding the legitimacy of the group’s control of Pacific Sogo Department Stores Co (太平洋崇光百貨).
The ruling on Thursday reaffirmed the validity of a NT$4 billion capital injection to Sogo by Far Eastern Department Stores Co (FEDS, 遠東百貨) and 14 other Far Eastern Group affiliates in 2002.
“The company is grateful for the court’s ruling, which serves to protect the legal rights and interests of [our] investors,” FEDS spokesman Ni Hou-kun (倪候昆) said in a statement.
In Taipei trading yesterday, Far Eastern Department Stores shares closed up 3.51 percent at NT$28, outperforming the TAIEX’s 0.07 percent decline.
On Nov. 29 last year, the Taipei High Administrative Court issued a verdict in favor of the group’s control of Sogo. It also dismissed both a Ministry of Economic Affairs injunction and other sanctions against FEDS in 2010.
The ministry did not agree with the Taipei High Administrative Court’s ruling and filed an appeal with the Supreme Administrative Court on Dec. 25.
Primasia Securities Co analyst Kai Chen said the Supreme Administrative Court’s decision yesterday had effectively sealed FEDS’ victory in the prolonged legal dispute.
“The decision should allow FEDS’ management to concentrate on daily operations and management of the company, especially in turning around its struggling operations in China,” where FEDS still has a lot of work to do, Chen said in a note yesterday.