TAIPEI–Food conglomerate Ting Hsin International Group (���s����), which is embroiled in a series of food scandals, has no plans to dispose of Taiwan Star Cellular Corp. (�x�W���P), a telecom arm of the group, Taiwan Star President Cliff Lai (�੶��) said Wednesday.
Lai said that Taiwan Star will operate as usual at a time when the company is gearing up to take a higher share in the local market’s 4G telecom services.
Ting Hsin said in a recent statement that it has encountered some financial difficulties, with some of its bank creditors tightening their credit after a public outcry over the group’s involvement in sales of questionable edible oil.
The group said it could be forced to dispose of some of its assets to meet its funding needs for day-to-day operations, while it will become more focused on its core food business.
The statement sparked market speculation that Ting Hsin will sell Taiwan Star and cable TV operator China Network Systems Co. (CNS) as a package.
Lai said he has held discussions with Taiwan Star Chairman Wei Ying-chiao (�Q����), during which he was informed that Ting Hsin has no intention of selling Taiwan Star. He added that he is unaware of any plan by Ting Hsin to sell CNS.
He said that Ting Hsin wants to take advantage of Taiwan Star’s presence to compete in the local 4G market in hopes that competition will improve the local 4G market.
Taiwan Star is one of six local telecom operators that won a 4G license in October 2013. It started its 4G services in August.
Lai said he expects the number of Taiwan Star’s 4G subscribers to increase to 150,000 by the end of this year from the current 100,000, on the back of the telecom operator’s efforts to sign up more users.
The Taiwan Star executive said the company will continue to improve the quality of its 4G services in a bid to boost the average revenue per user and eventually strengthen its bottom line. New Taipei Shoots Down Land Project by Ting Hsin Group New Taipei has turned down an application by Ting Hsin International Group, the corporate entity at the center of months of edible oil scandals, to change the designation of a parcel of land it owns from industrial use to mixed residential and business use.
Chang Wen-te, deputy head of New Taipei’s Urban and Rural Development Department, said the food-making corporate group which also has interests in land development had its project in Sanchong District rejected because its bad oil has done serious damage to public health.
Wei Chuan Foods Corp. (�������q), a subsidiary of Ting Hsin, announced Monday that it will sell stocks of a development company as well as the factory land in Sanchong for a price of NT$7 billion (US$225.23 million).
The below-market price indicates the cash crunch the group is going through as an angry public continues to boycott its products.