Next Media Group’s (壹傳媒集團) deal to sell its media outlets in Taiwan may run aground after the Financial Supervisory Commission (FSC) yesterday voiced its strong objection to financial holding firms controlling media companies.
Jeffrey Koo Jr (辜仲諒), the eldest son of Chinatrust Financial Holding Co (中信金控) founder and chairman Jeffery Koo (辜濂松), and related parties of Chinatrust Financial, cannot have control over companies in both sectors, said Jean Chiu (邱淑貞), deputy director-general of the commission’s Banking Bureau, citing the principle of “separation of banking and commerce.”
“Koo Jr and family will have to reach a decision very soon detailing how they intend to uphold the principle,” Chiu said by telephone.
Last month, Koo Jr inked a memorandum of understanding with Next Media Group to buy the Hong Kong-listed firm’s Chinese-language Apple Daily, Taiwan Sharp Daily, Next Magazine and Next TV for NT$17.5 billion (US$600 million).
The financial regulator made known its stance after Koo Jr, chairman of the Chinatrust Charity Foundation, paid a visit to the commission earlier yesterday to resolve potential regulatory resistance.
Koo Jr, who has teamed up with Formosa Plastics Group (台塑集團) chairman William Wong (王文淵) and a Singapore-based private equity fund in the buyout attempt, is expected to hold an investment meeting today and is scheduled to sign a definitive agreement, as well as all other necessary legal documentation, with Next Media on Saturday.
“The commission will adopt a strict reading of the laws governing financial holding companies and qualifications for major shareholders to uphold the principle of separation [of banking and commerce] and prevent a concentration of power,” Chiu said.
While Koo Jr and his father own only 7 percent of Chinatrust Financial, lower than the 10 percent regulatory threshold to be classified as “major shareholders,” the Koo family and its related parties actually have majority control of the conglomerate’s boardroom, Chiu said.
It is therefore inappropriate if the same parties also control, operate, or represent media firms because it would render the nation’s financial stability vulnerable in the event of a scandal or cyclical volatility, she said.
“The Koo family must address those concerns,” Chiu said. “Assurance by Chinatrust Financial that it will not provide funding to Koo Jr is not enough.”
The commission will not turn a blind eye if the Koo family seeks to circumvent the separation rule through other means, Chiu said, adding that Koo Jr had promised to brief the public on the matter in the next few days.
The anti-media monopoly alliance raised similar concerns yesterday, saying that Koo Jr had been involved in financial scandals and was unfit to run a media corporation.
One of the financial scandals in which Koo was involved was Chinatrust Financial’s flawed bid for rival Mega Financial Holdings Co (兆豐金控) in 2006 — known as the Red Fire Case (紅火案), after the name of the offshore company used to conduct the illegal transaction. He had evaded an arrest warrant and hid in Japan for two years before returning to Taiwan in 2008. He was the vice chairman of Chinatrust Financial at the time.
Chen Hsiao-yi (陳曉宜), organizer of the alliance, said Koo Jr was not fit to run a media business because he had been sentenced to nine years in jail by the Taipei District Court in 2010 for the illegal takeover bid for Mega Financial in violation of the Securities Exchange Act (證券交易法) and the Banking Act (銀行法).
Koo’s case is under appeal.
TAIWAN PROTECTION MEASURE: US Army General Charles Flynn would not say where in the Asia-Pacific the missiles would be sent, but only that they would arrive in 2024 The US is to send medium-range missiles including the Standard Missile 6 (SM-6) and Tomahawk to the Asia-Pacific next year to deter a Chinese attack on Taiwan, US military news Web site Defense One reported. The report cited comments US Army General Charles Flynn made during the annual Halifax International Security Forum on Nov. 19. “We have tested them and we have a battery or two of them today,” Flynn was quoted as saying. “In [20]24. We intend to deploy that system in your region. I’m not going to say where and when. But I will just say that we will
UNUSUAL UPTICK: There are more flu-like illnesses in northern China than in the past 3 years, but data from Beijing showed that known pathogens are responsible Responding to an uptick in respiratory illnesses in China, the Centers for Disease Control (CDC) yesterday said it has instructed international airport and port quarantine centers to raise their alert levels, and plans to issue an alert to healthcare practitioners. The number of flu-like illnesses reported in northern China has been increasing for five consecutive weeks, and is higher than the same period in the past three years, CDC Deputy Director-General Philip Lo (羅一鈞) said. “According to the WHO’s latest statement, issued yesterday, information provided by Chinese government showed that the illnesses were mainly reported among children, and the illnesses were attributed
LOYALTY: The 10 active and retired soldiers betrayed the nation and its people by leaking and passing on military secrets to China, the High Prosecutors’ Office said Ten former and current military officers were yesterday indicted on charges of spying for China, including two who allegedly filmed themselves pledging loyalty to Beijing. The High Prosecutors’ Office requested life imprisonment for the suspects in light of the severity of the crime. The 10 active-duty and retired officers included members of the 601st Brigade of the Aviation Special Forces comprising attack helicopter squadrons and elite combat units in charge of defending northern Taiwan, including Taipei. The other suspects came from Huadong Defense Command, in charge of defending the eastern coast; Kinmen Defense Command, in charge of defending Kinmen and Matsu; and one
‘OPEN TO DIALOGUE’: Her alliance with Vice President William Lai is based on their commitment to preserve the nation’s freedom and democracy, Hsiao Bi-khim said Taiwan should “trust, but verify” reports that Chinese President Xi Jinping (習近平) denied that Beijing plans to invade Taiwan in 2027, Democratic Progressive Party (DPP) vice presidential candidate Hsiao Bi-khim (蕭美琴) told reporters yesterday. “We anticipate and we hope that Chairman Xi Jinping was sincere when he said there was no timetable” for bringing Taiwan under control by force, said Hsiao, who earlier this week resigned as the representative to the US to join the ticket of DPP nominee, Vice President William Lai (賴清德). Borrowing a phrase from former US president Ronald Reagan — which US President Joe Biden also used after
RSS