ASEAN KEY DESTINATIONS
Malaysian firm cancels purchase of iconic Taipei 101
IOI Properties Group Bhd purchase plan of a 37.17 per cent stake in Taipei Financial Centre, better know as Taipei 101, for NT$25.14 billion (US$798 million) from Ting Hsin International Group has been cancelled.
IOI Properties said on Friday the three months period for the seller and purchaser to obtain the foreign investment approval from the Investment Commission (FIA) of Taiwan expired on March 5.
“The company has decided not to extend the three months period as stated in the Clause 10.1(c) of the SSA and hence, the SSA is terminated.
“In accordance with the SSA, the company will now proceed to obtain the refund of the deposits paid by IOI Properties,” it said.
To recap, IOI Properties’ purchase of the iconic building was opposed by Taiwan’s Finance Minister Chang Sheng-ford.
Chang expressed concerns about the deal, saying the Taipei 101 should not fall into the hands of foreign investors. Other Taiwanese politicians added pressure by urging Taiwan’s Investment Commission to reject the transaction.
“Our evaluation shows that IOI is seeking management control rather than just a financial investment,” Chang was reported as saying.
The regulatory body said it would “give a strict review” of the deal following opposing views from Taiwanese legislators.
This saw IOI Properties coming out with a statement to state that it was never its intention to seek management control in TFCC.
“If succeeded, it will be IOI Properties' honour to be associated not only with an iconic building of Taiwan but also a building representing Asia as a whole,” IOI Properties had stated on December 11, 2014.
IOI Properties had also stated it was sincere in its approach on the proposed acquisition and if the said proposal goes through, it would abide by Taiwanese laws in all respects.
In the December 11 statement, IOI Properties categorically stated it was its strategy to expand its overseas business and this proposed acquisition also aligned well with its direction.
IOI Properties added that by allowing a foreign investor in TFCC, it would not be in conflict with the nationalism as Taiwan would still maintain the management.
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