Friday 29 Mar 2024
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PUTRAJAYA: IOI Properties Group Bhd executive chairman Tan Sri Lee Shin Cheng said yesterday there are no investors from China in the company, further allaying Taiwan’s concern over the group’s planned acquisition of a major stake in the iconic Taipei 101 tower.

IOI Properties is buying a 37.17% stake in Taipei Financial Center Corp, which owns the Taipei 101 in Taiwan, from Ting Hsin International Group for RM2.74 billion.

IOI Properties had previously clarified that its investment in Taipei Financial had no political agenda when the proposed acquisition met with resistance from the Taiwanese government after it was alleged that the group was seeking management control of the skyscraper if the deal is effected — which IOI Properties had also vehemently denied.

The issue of investment from China has long been regarded a taboo when it comes to foreign investments in Taiwan, as mainland China considers Taiwan a renegade province due to their historical political ties.

“I can say there is none (no investors from China in IOI Properties). I have been interviewed by the Taiwanese media and answered a lot of questions. So I think the issue has probably cooled down,” he told pressmen yesterday after the group’s extraordinary general meeting.

The press conference yesterday was his first meeting with local media after IOI Properties’ planned Taipei 101 investment hit the headlines on Dec 5.

“The relationship between Taiwan and Malaysia is very cordial. There are a lot of Taiwan investors in Malaysia, and now, probably, Malaysians should invest there. I think bilateral investment is good for every country,” Lee said.

He also stressed that Taiwanese authorities had not decided on whether to reject the Taipei 101 deal. As such, any presumption at this juncture was irrelevant, he added.

“Let them (the Taiwanese authority) process it first. We will have another interview with the media if they reject our proposal,” Lee said.

Meanwhile, Lee had told Taiwan’s Next Magazine earlier this week that he expected the Taiwanese authorities to give the group a reasonable justification if they reject the proposed acquisition.

“Malaysia and Taiwan are both members of WTO (World Trade Organization), so they should give us a reason if the deal is not approved,” he told the magazine.

Lee is of the view that IOI Properties’ investment in Taipei 101 and Ting Hsin’s food scandals should be assessed rationally and separately, and that it was an insult for the group to be viewed as Ting Hsin’s deception plot partner.

Ting Hsin, the parent company of Hong Kong-listed Tingyi Cayman Islands Holding Corp and maker of China’s popular Master Kong instant noodles, has been under scrutiny after being hit by food scandals. In October, Taiwanese prosecutors arrested a key member of the family that controls Ting Hsin over the alleged sale of tainted cooking oil.

“We are a respectable company in Malaysia. Globally, we are one of the top in terms of management, so it is an insult to us,” Lee told the magazine.

He also said he had been attracted to the building from five years ago due to the similarity of its name with the “IOI” brand.

Lee reiterated that IOI Properties’ intention towards Taipei 101 is purely investment-driven, and has no interest to fight for any management right.

“I believe our investment will only be value-adding to Taipei 101, elevating it to not only just a landmark in Taiwan, but in the entire Southeast Asia too,” he remarked.

 

This article first appeared in The Edge Financial Daily, on December 19, 2014.

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