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🇹🇼 Taiwan /Economy & Trade

Fengwei and Yongwei Join Senwei Takeover, Prompting Questions Over NT$17 Billion in Debt

From Liberty Times · () Chinese

Translated from Chinese and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources New plan
  • Fengwei and Yongwei approved plans to sell their Senwei Energy shares through Hu Zhengjie’s tender offer at NT$0.05 per share.
  • The companies cited Senwei’s negative net asset value, overseas subsidiary liquidations, early repayment demands and uncertainty surrounding an offshore wind project.
  • Market observers questioned whether the transaction could remove the group’s exposure to about NT$17 billion in liabilities, with banks’ next actions still uncertain.

Fengwei and Yongwei have chosen to sell their entire holdings in Senwei Energy through a tender offer, a decision that market observers described as a possible corporate split from the troubled company.

Yongwei spokesman Lin Kun-huang said Senwei’s net asset value had fallen to negative NT$15.5 per share as of the end of June. The boards of Fengwei and Yongwei approved participation in Hu Zhengjie’s public tender offer at NT$0.05 per share. Fengwei Group holds about 143,280 lots of Senwei shares, including about 121,282 lots held by Yongwei Holdings.

Lin cited several risks behind the decision. Overseas subsidiaries are being liquidated, some banks have demanded early repayment, and losses and financial risks could continue to grow. The second phase of Taiwan Power’s offshore wind project also faces major engineering and contractual uncertainties.

Senwei Energy’s net asset value is negative NT$15.5 per share.

— Lin Kun-huangThe Yongwei spokesman explained the financial condition cited by the boards in approving the share sale.

The companies said selling the shares would prevent them from continuing to recognize losses and affecting shareholder equity. Once the sale is completed, Fengwei and Yongwei will lose control of Senwei and will no longer bear its operating or financial risks. Their chairmen have been authorized to handle the tender, settlement and required disclosures.

Lin said Fuwei has about NT$10 billion in debt, Senwei about NT$6 billion, and Baowei may have another NT$1.5 billion in bank loans while it undergoes liquidation. Because Senwei guaranteed those loans, the overall liabilities total about NT$17 billion. Previous disclosures also showed NT$470 million in overdue loans and a NT$21.475 billion syndicated loan led by CTBC Bank. Market observers said whether the banks can prevent the debt from being shifted away will depend on the lenders’ subsequent actions.

A JIT will investigate the case from various angles while a commission can provide assistance in the investigation.

— State lawyerThe lawyer explained the distinction between a joint investigation team and a judicial commission during the court hearing.
About this summary

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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