Fri, Dec 22, 2017 - Page 12 News List

Far Eastern chairman seeks to leverage COTA board seats

By Ted Chen  /  Staff reporter

Far Eastern Air Transport Corp (遠東航空) chairman Chang Kang-wei (張綱維) on Wednesday announced his intention to leverage his stakeholding to take seats on the board of COTA Commercial Bank (三信商銀) ahead of a board election at an extraordinary shareholders’ meeting today.

Chang, who since 2001 has accumulated a 4 percent stake in the lender, is confident that he can swing enough votes to secure either three board of director seats or two independent director seats with the help of proxy solicitation firms, he said at a news conference in Taipei.

Chang accused COTA chairman Liao Song-Yue (廖松岳) of spreading false rumors suggesting that Far Eastern would cease operations in an effort to stop the takeover.

“My involvement is motivated by the desire to improve governance at COTA Commercial Bank,” Chang said.

COTA has become a prime target for heavyweight investors, as captialization of the 102-year-old lender is estimated at about NT$6.3 billion (US$210.08 million), compared with total assets of more than NT$150 billion, local media have reported.

New Taipei City-based residential property developer Pau Jar Group (寶佳機構) has also expressed interest in taking two seats on the lender’s board.

Chang was optimistic that Pau Jar would call off its efforts at the election, as it is a law-abiding company, he said.

The Financial Supervisory Commission earlier this month told the real-estate giant — which has been accumulating large stakes in several financial holding companies and banks — that it should concentrate investment in that sector and limit efforts to appoint board directors to a single bank of a financial holding company.

The commission has not found procedural irregularities at COTA, it said.

A number of investor factions have announced 28 candidates for 12 board director seats and three independent director seats, regulatory filings showed.

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