Wei Chuan Foods Corp (味全食品工業) yesterday said it planned to sell a 51 percent stake in a land development subsidiary and a plot of real estate in New Taipei City’s Sanchong District (三重) later this month for at least NT$7 billion (US$225.34 million).
It would represent the first step in Wei Chuan’s efforts to refocus on its core food business, after new chairman Jason Lee (李鳳翱) vowed last month to take drastic measures to regain the public’s confidence in the safety of its food products.
Wei Chuan, an affiliate of Ting Hsin International Group (頂新國際集團), holds a 51 percent stake in the land development unit, which is a joint venture between Wei Chuan, Ting Ho Development Co Ltd (頂禾開發) — another Ting Hsin subsidiary — and Abico Group (能率集團).
“The other shareholders of Ting Shuai have agreed to our decision [to sell],” Wei Chuan said in a statement filed with the Taiwan Stock Exchange.
Wei Chuan originally expected the subsidiary and the development project in Sanchong to contribute significant revenue upon the project’s expected completion in 2016.
However, upon the discovery of its involvement in multiple adulterated oil scandals, Wei Chuan faced heavy pressure to reform its food traceability management practices, focus more on its core business and overhaul its board of directors.
Wei Chuan has set the base price of its subsidiary’s shares at NT$6.3 billion, with real-estate plot’s base price set at NT$700 million.
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