Chang Kuo-wei, youngest son of the Evergreen group’s late founder Chang Yung-fa, has criticized his estranged oldest brother for unilaterally executing transactions to consolidate the group’s container shipping assets.
The younger Chang was discussing the actions of Chang Kuo-hua with Taiwanese journalists shortly after Evergreen Marine Corporation’s (EMC) minor shareholders filed a lawsuit against 10 of the company’s directors, including Chang Kuo-hua, on 26 March.
The minor shareholders have alleged breach of trust and irregular transactions on the directors’ part, particularly EMC’s spending TW$30 billion (US$940 million) to buy assets from the Panama-incorporated Evergreen International S.A. (EIS), which has a 7.4% stake in EMC. In recent months, EMC has acquired its Italian and Singaporean affiliates, Italia Marittima and Evergreen Marine Singapore, to bring all container shipping assets under one roof.
Chang Yung-fa, who died in 2016, had willed most of his US$437 million fortune and the running of his business empire, which includes EVA Air and Evergreen Steel, to his youngest son, who was borne of his second wife.
Soon after the patriarch’s death, Chang Kuo-wei’s older brothers forced him out of the family business, and he established Starlux Airlines, and one of them challenged the validity of their father’s will. However, Taiwan’s High Court upheld the legality of Chang Yung-fa’s will, although the decision regarding who should run the businesses is up to the companies’ directors and shareholders.
Chang Kuo-wei, speaking to journalists in his capacity as a shareholder of EIS, which is regarded as the Evergreen group’s offshore asset-holding entity, said, “I don’t object to Big Brother’s division of the business, but he shouldn’t call the shots, as the transactions must be fair, above-board and transparent. I’m afraid of selling at a low price, and the minor shareholders of Evergreen Marine are afraid of buying at a high price.”
Chang Kuo-wei’s words suggested he is tacitly supporting the minor shareholders’ suit, and the latter group has appointed Lin Wen-peng, a director at Uni Air, and a known ally of Chang Kuo-wei, as its lawyer. In April 2022, Chang Kuo-wei returned to the family business as chairman at Uni Air, holding this post simultaneously with being Starlux’s chairman.
Chang Kuo-wei continued, “I agree with my eldest brother’s suggestion of dividing the assets. I can use the money from the business separation to develop Starlux but don’t treat me badly. The appraisal report (for the transactions) was not shown to EIS shareholders, so be reasonable.”
EMC, through a Taiwan Stock Exchange filing, insists that the transactions were vetted.
The dispute between the brothers took on another twist today (29 March) as another EMC minor shareholder, Chen You-liang, filed a complaint against the company at the Taipei District Prosecutors Office.
Chen claimed that the authorities should establish the truth behind EMC, and not let the shareholders bear any losses.
In a statement sent to Container News, EMC said, “The company has always attached great importance to corporate governance and shareholders’ benefits. All acquisitions and disposals of significant assets by the company and its subsidiaries are conducted by established procedures. In addition to obtaining asset value assessment reports issued by credible industry experts, the company also appoints independent and impartial accountants to provide fairness opinions on the transaction prices of each case. All major asset acquisition and disposal cases are reviewed and approved by the company’s audit committee and board of directors. Material information of each transaction is timely published or announced in a press conference in compliance with the regulations of the competent authorities.”
Martina Li
Asia Correspondent
