Ting Hsin International Group (頂新國際集團) confirmed yesterday that it has agreed to sell its 37.17 percent stake in Taipei Financial Center Corp (TFCC, 台北金融大樓公司), the firm that operates the Taipei 101 building, to Malaysia’s IOI Properties Group Bhd for NT$25.14 billion (US$808.13 million).
The deal came after the Ministry of Finance (MOF) — the largest shareholder in TFCC with a 44.35 percent stake — in October urged Ting Hsin to liquidate its shares in TFCC, saying the firm’s involvement in a series of food safety scandals was damaging Taipei 101’s image as a national landmark.
“The decision is in line with the expectations of the government and the public, while easing financial pressure on the group and protecting employee rights,” Ting Hsin spokesman Ted Chia (賈先德) told a news conference in Taipei.
Photo: CNA
Several Taiwanese banks have decided not to extend additional credit to the group and its affiliates, saying its involvement in the most recent adulterated tainted oil scandal sparked a public outcry.
The group is more than NT$40 billion in debt and has not ruled out selling off other assets after the conclusion of the proposed TFCC deal, Chia said.
Last month, Ting Hsin said it was considering offloading assets to raise funds, with major Ting Hsin subsidiary Wei Chuan Foods Corp (味全食品工業) last week revealing plans to sell a land development unit and a plot of real estate in New Taipei City’s Sanchong District (三重).
Photo: CNA
About 10 potential domestic or overseas buyers have contacted Ting Hsin and expressed interest in acquiring the group’s TFCC stake, and the company received offers higher than the IOI Properties bid it finally accepted, Chia said.
The group’s decision to ink a deal with IOI Properties — one of Malaysia’s top 10 developers — is based on the Malaysian firm’s positive attitude and strong background in land and real-estate development, Chia said.
IOI Properties is controlled by one of Malaysia’s richest businesspeople, Lee Shin Cheng (李深靜), and the deal is expected to give the Malaysian firm a stable rental income from Taipei 101.
There is also the potential for capital appreciation, given the property’s “strategic location,” a statement issued by IOI Properties said.
If the deal with IOI Properties is accepted by the government, Ting Hsin would receive about NT$17 billion in profit. In the past five years, Ting Hsin paid about NT$8 billion in total for its 37.17 percent stake in TFCC, from several private investors including China Life Insurance Co (中國人壽) and China Development Financial Holding Corp (中華開發金控).
Ting Hsin plans to use NT$3 billion from the deal for a food safety fund, an offer the group made earlier this year as the extent of the oil scandal became evident, Chia said, adding that the group has opened an account with the Industrial Bank of Taiwan (台灣工商銀行) and is discussing how to manage it with entrepreneur Samuel Yin (尹衍樑).
However, the deal has yet to undergo regulatory review or gain approval from Ting Hsin’s board of directors.
The Ministry of Economic Affairs’ Investment Commission yesterday said it has not received any proposals from Ting Hsin or IOI Properties over the deal.
Once receiving the proposal, the government would have to look at the shareholder structure of IOI Properties to make sure there is no Chinese capital involved, the commission said in a statement.
The commission said it would also solicit opinions from government agencies, including the Ministry of Finance, the Financial Supervisory Commission, the central bank and the Mainland Affairs Council, before moving ahead with the review process.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source