The changing of the guard at one of Taiwan’s most venerable companies was completed yesterday with the appointment of Eastern Broadcasting Co (東森電視) chairman Lin Wen-yuan (林文淵) as the new chairman of Tatung Co (大同).
Lin, no relation to the Lin family that has controlled Tatung since its founding 102 years ago, was elected unanimously by the company’s nine-member board at an extraordinary board meeting.
The board is controlled by activist investors led by Shanyuan Group (三圓建設) chairman Wang Kuang-hsiang (王光祥).
Photo: Peter Lo, Taipei Times
Despite a long and acrimonious struggle between company management led by outgoing Tatung chairwoman Lin Kuo Wen-yen (林郭文艷) and the activist investors, Lin Wen-yuan struck a reconciliatory tone at a news conference following the board meeting.
“I am not here to swing axes or create a revolution,” the new chairman said. “On the contrary, I respect the need for continuity in leadership and will be consulting with Mrs Lin Kuo to make sure the transition is smooth.”
Noting that he “was not here” during the years when Tatung was embroiled in a boardroom drama, Lin Wen-yuan said that his relationship with Lin Kuo is cordial and they are “aligned in their common goal of making Tatung better.”
During the meeting, a motion was filed to make Lin Kuo the honorary chairwoman of Tatung.
“It was Wang’s idea, and Lin Kuo accepted,” Lin Wen-yuan said.
Once among Taiwan’s most successful companies, Tatung has fallen on hard times in the past few decades. Former Tatung chairman Lin Wei-shan (林蔚山) has been jailed for embezzlement and Lin Kuo, his wife, took over as chairwoman.
The company has incurred losses from its non-core investments, such as LCD maker Chunghwa Picture Tubes Ltd (CPT, 中華映管) and Green Energy Technology Inc (綠能科技), which prompted Lin Kuo to cover the losses by selling plots of land from Tatung’s substantial holdings.
It has been more than a decade since the company paid a dividend.
While saying that his predecessor “did what she had to do” to keep the company afloat, Lin Wen-yuan said he would “communicate with banks” on how to service Tatung’s loans without the continued liquidation of assets.
“I am not worried about the banks, they will be happy to see me,” he said. “Tatung has enough collateral. Tatung will not fall and if it did, their investments would be sunk.”
Wang repudiated rumors that he is planning to liquidate his stake in Tatung, saying he is committed to the company’s future.
“I might buy more,” he added.
Asked about rumors that he might become vice chairman of Tatung, Wang said he is open to the opportunity should it arise.
Lin Wen-yuan is to remain the chairman of Eastern Broadcasting Co.
“Strong CEOs make for relaxed chairmen,” Lin Wen-yuan said. “Eastern Broadcasting has an established team and will not take up too much of my time.”
Lin Wen-yuan said he has handpicked a new chief executive officer for Tatung, who needs to vote in by the company’s board on Friday next week.
“I cannot name him out of respect for the board, but I can tell you he has an electrical engineering background and he is not a previous employee of Tatung,” he said.
Lin Wen-yuan acknowledges that the company is facing significant challenges, having been “overtaken by other companies” in its core businesses, while new investment attempts have become “hot potatoes,” such as CPT.
“I cannot promise when Tatung will pay a dividend again, but I can promise that in a year they [investors] will have a new Tatung,” Lin Wen-yuan said.
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