Reported 8 months ago
At the shareholders' meeting of old-established domestic steel factory Tang Rong on June 25, 2024, there was a board of directors' re-election. State-owned-enterprise shares secured 7 seats, while the minority-owned shares led by Yieh United only gained 4 seats, one less than the previous term. Despite this, Yieh United remains determined to acquire Tang Rong through various means and strategies to increase its stake. The main reasons for Yieh United's interest in Tang Rong are to gain dominance in the domestic stainless steel market to control prices and to utilize Tang Rong's significant land assets, including over 20,000 square meters of land in Kaohsiung Zhongdu redevelopment area alone, valued at more than 26 billion NTD. Although Tang Rong's performance has been subpar in recent years due to global economic conditions and geopolitical factors affecting the stainless steel market, Yieh United has persistently pursued the merger. Yieh United currently holds around 42% of Tang Rong's shares through its subsidiaries and looks to increase it to over 48%. Achieving this merger could promote industrial integration and expand operational scale, enabling them to have a significant say in pricing. Moreover, Tang Rong's extensive land assets are also a valuable attraction for Yieh United. However, with major shareholders of Tang Rong being state-owned enterprises and the Fair Trade Commission blocking Yieh United's previous acquisition attempts due to concerns of market dominance in the stainless steel flat product sector, the prospects of a successful merger remain uncertain.
Source: YAHOO