Tai Shan Executives Investigated for Insider Trading in FamilyMart Share Sale

Taiwanese prosecutors have launched an investigation into alleged insider trading involving the sale of Tai Shan's stake in FamilyMart convenience stores. The probe targets current and former executives of the food company, as well as individuals linked to the contentious battle for control of Tai Shan that was ongoing at the time.

In late 2022, Tai Shan's board of directors approved the disposal of over 40,000 shares in FamilyMart, a move seen as potentially diminishing the appeal for market contenders seeking to gain control of the company. The sale, conducted at 187 New Taiwan dollars per share, generated approximately NT$8.097 billion.

Investigators are scrutinizing trading data, suspecting that related accounts engaged in abnormal transactions before the sale's details were made public. The investigation includes the current chairman Liu Wei-lung, former chairmen Chan Yueh-lin and Chan Ching-chao, and Chan Jen-chien, the father of Faye Chan, the former lead singer of the band F.I.R.

The probe is examining whether these individuals possessed prior knowledge of the FamilyMart share sale and traded Tai Shan stock accordingly, potentially violating securities trading laws. The case underscores the intense corporate governance struggles within Tai Shan, a company with a long history in the food market, originally founded by the Chan family.