Go to the main content block
:::   Home > About TSC > What's New

what's new

TSC: Lack of budget and unsuitability to set up another state-run firm, so not to buy China Airlines' stake in Science Park Logistics

2021-07-27

With regard to the news conference held by the New Power Party (NPP) today, the Party accused TSC did not exercise its right of first refusal in 2017 when China Airlines had been selling its stake in Science Park Logistics (SPL). Not merely did the decision transform SPL from a partially state-run company to a private company, but further caused SPL to be penetrated by suspected funding from China, according the media. "We have specially explained to the NPP on 26th June," TSC said. TSC's decision-making process then is as outlined below: 


1.China Airlines officially informed TSC on June 23, 2017 and requested TSC to express the willingness to buy all 26% stake at a time within 30 days. Basing on good corporate governance, TSC had to evaluate the reasonableness of the offering price and the necessity of the investment. In the end, TSC considered that buying China Airlines' 26% shares would turn SPL into a state-controlled firm with over 50% state ownership, causing huge impacts on its overall business operation and service for Tainan Science Park. The investment decision needs to be more cautious. 


2.In fact, in the beginning of establishment of Tainan Science Park in 1997, the Park collected TSC's land and TSC had originally planned to self-operate and invest in logistics and warehousing; however, the Park Preparation Office considered TSC did not possess expertise in high-tech logistics. Also, as a government-owned company, TSC is restricted by laws and regulations which makes it more difficult to be responsive to the needs of the Park. In the end, SPL operates in joint ventures with TSC and other private companies. 


3.After receiving China Airlines notice of first refusal, TSC consulted Tainan Science Park Administration and SPL, and both of them indicated since SPL did not belong to prohibited business, there was no tax preference. This fact is irrelevant to whether SPL could have been state-controlled firm with over 50% state ownership and it was specially being annotated in TSC’s internal evaluation records.


4.The crux of this case is that TSC did not have any budget to purchase the stake at that time, not to mention a reply within 30 days. The timeframe of completing budget planning, submission, and approval was already inadequate; moreover, setting up another state-owned firm greatly differed from the original equity investment plan. 


“The decision was made after comprehensive internal discussion and evaluation,” TSC emphasized. As a government-owned enterprise, any investment decisions must be in accordance with established procedures and formative assessment. In the SPL case, basing on good corporate governance, TSC considered its current 26% shareholding suffices to maintain ownership and profitability. Related procedures and considerations about this case can be shown to the public. 




TSC News Contact Person:

Chang, Mu-Jung

Public Relations, Department of Secretariat, TSC

Contact Number: 886-6-337-8819 / 886-920-636-951

Email: a63449@taisugar.com.tw


  • main products
  • Ez-Lohas Reservation Center
  • Facebook sharing
Go top