Taisun chairman, ex-president granted bail in insider trading probe over FamilyMart stake sale

Taiwanese authorities are investigating potential insider trading linked to a significant stock sale by Taisun Enterprise, a food and beverage company with a long history. In late 2022, Taisun decided to sell over 40,000 shares of FamilyMart, a stake long considered a major source of income. This decision came at a critical juncture when the Zhan family, which had historically controlled Taisun, was engaged in a fierce battle for management rights against the Longbon Group.

The sale, executed at 187 New Taiwan dollars per share for a total of NT$8.097 billion, was widely interpreted as a strategic move to diminish the market's incentive for further acquisition by the opposing faction. The timing of this divestment, shortly after a board meeting and before the official announcement of the sale, has raised suspicions among investigators.

Prosecutors are examining trading data from before and after the public disclosure of the sale. They suspect that individuals with prior knowledge of the FamilyMart share disposal may have traded Taisun stock accordingly, potentially violating Taiwan's Securities and Exchange Act. The investigation has implicated both former and current leadership figures within Taisun, including current chairman Liu Weilong and former president Zhan Rendao, who were among those questioned.

Both Liu Weilong and Zhan Rendao were subsequently granted bail of NT$500,000 each, with restrictions placed on their ability to leave Taiwan. The investigation is ongoing, with authorities seeking to clarify the full extent of the alleged insider trading activities surrounding this high-stakes corporate maneuver. The case highlights the intense corporate governance struggles within Taiwanese companies and the regulatory scrutiny applied to such transactions.