By Joy Chang ,The China Post
TAIPEI, Taiwan — Ting Hsin International Group’s (頂新集團) buyout of CNK (中嘉), a Multiple System Operator (MSO) of cable television in Taiwan, might not go as smoothly as planned, as banks have decided to temporarily suspend lending to Ting Hsin.
Financial Supervisory Commission (FSC) Chairman Tseng Ming-tsung (曾銘宗) said that the banks’ loan suspension will hinder the process of the buyout, since Ting Hsin is rumored to need an estimated NT$70 billion to buy out CNK.
Since the recent oil scandal sullied Ting Hsin’s reputation, the public is against the group’s buyout of CNK, saying that they object to Ting Hsin, an apparently amoral company, taking control of the press.
The recent food scare involves Cheng-I Food Co. (正義食品), a subsidiary of Ting Hsin, which sold lard-based cooking oil mixed with low-quality oil meant for animal feed.
The management of the National Communications Commission said that they have yet to receive Ting Hsin’s application for the buyout of CNK. Local media reported that management will still go over its application according to legal procedures, but some committee members probably will bear Ting Hsin’s past illegal doings in mind before making a decision.
Ting Hsin spokesperson Chou Shih-hui (周世惠) said that the buyout will be carried out according to the company’s original plans, but Ting Hsin will appraise the whole situation before deciding when to send the application.
Ting Hsin’s Cash Flow Worth 10 Billion Chinese Yuan According to sources in the financial industry, the banks’ refusal to lend money to Ting Hsin will not affect the group much, as the financially strong group does not need to borrow extravagant amounts of money from financial institutes.
Ting Hsin’s cash flow in mainland China reached 10 billion yuan at its peak. Currently, banks have loaned amounts of NT$5.7 billion to Wei Chuan Corp. (味全公司), a subsidiary of Ting Hsin, and NT$797 million to Ting Hsin itself.
Wei’s Family Denied Taipei 101 Management Rights: FSC FSC Vice Chairman Wu Tang-chieh (吳當傑) said that the government will prevent Ting Hsin from obtaining management rights for Taipei 101 at the re-election of the board directors next year.
Wu said that since Ting Hsin holds the highest percentage of privately owned shares, the FSC will ensure that the government-held shares and the rest of the privately held shares will not be sold to Ting Hsin.