Ting Hsin International Group (頂新國際集團) yesterday said it might consider disposing of certain domestic assets in the face of rising debt pressures, as several local banks have tightened lending to the food conglomerate.
The group made the announcement in response to a news article published yesterday by the Chinese-language Next Magazine, which said that Ting Hsin might liquidate its assets in Taiwan, including various land construction projects and stakes in companies such as Taiwan Star Telecom Corp (台灣之星).
The magazine said the move to offload assets comes as Wei Ying-chou (魏應州), the eldest of the four Wei brothers and head of Tingyi (Cayman Islands) Holding Corp (康師傅控股), does not plan to support his younger brothers’ businesses in Taiwan after the adulterated oil scandal that erupted in September heavily damaged the group’s reputation.
Tingyi is China’s biggest instant noodle maker, known for its popular Master Kang (康師傅) brand.
“The group had a healthy financial position, but the recent money-tightening from banks has created heavy pressure, forcing it to consider disposing of some quality assets,” Ting Hsin said in a statement.
Ting Hsin said it has always maintained a good credit record. It has not changed its attitude about continuing to invest in Taiwan, but would focus more on its core business, the statement said.
However, Ting Hsin rejected the magazine’s view that Wei Ying-chou is distancing himself from his brothers after the latest scandal.
“The Wei family is still united,” the group’s statement said, adding that the family feels sorry for former Ting Hsin Oil and Fat Industrial Co (頂新製油實業) and Cheng I Food Co (正義股份) chairman Wei Ying-chun (魏應充).
Wei Ying-chun, the third brother of the family and former chairman of Wei Chuan Foods Corp (味全), is in custody after he and several former executives of Ting Hsin and its suppliers were indicted by prosecutors last month for allegedly selling cooking oil adulterated with animal feed.
The charges include violations of the Act Governing Food Safety and Sanitation (食品安全衛生管理法), fraud and the forgery of documents, prosecutors said.
Meanwhile, Taiwan Star Telecom, chaired by Wei Ying-chiao (魏應交) — the second brother — yesterday declined to comment on local media reports that Ting Hsin might sell its stake in the 4G telecom operator to Far EasTone Telecommunications Co (遠傳電信), the nation’s No. 3 telecom.
Ting Hsin is the biggest shareholder in Taiwan Star, holding a 52 percent stake. Other major shareholders include the Lin Yuan Group (霖園集團), which owns Cathay Financial Holding Co (國泰金控), with a 20 percent stake; Central Motion Pictures and Kinpo Group (金仁寶集團), each with a 10 percent stake; and Chinatrust Financial Holding Co (中信金控), which holds an 8 percent stake.
Taiwan Star, which obtained its 4G license in October last year, said operations remain normal. The management said it would not comment on any potential change among major shareholders’ stakes.
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