Evergreen Group scion Chang Kuo-wei’s lawyer said that his client is suing the executors of his father’s will, which named him the successor to the late Chang Yung-fa’s business empire.
As a consequence, Evergreen Marine Corporation’s transactions with Panama-incorporated Evergreen International S.A. (EIS) could be nullified, resulting in losses over US$900 million.
EIS represents the interests of late Evergreen group founder Chang Yung-fa and his sons, Chang Kuo-hua, Chang Kuo-ming, Chang Kuo-cheng and Chang Kuo-wei – the older three borne of the patriarch’s first wife, and the youngest of his second wife. Chang Yung-fa and his sons each had a 20% stake, but it is not clear who the patriarch’s stake went to after his death in January 2016.
Speaking at a media briefing, Chang Kuo-wei’s lawyer, Chen You-liang, said: “After Chang Yung-fa passed away, the executors not only maliciously violated the will and appointed Chang Kuo-hua as EIS’ PP (permanent representative). Ke Li-ching (one of the executors) is also the president of EIS. How many assets does Evergreen Group have at home and abroad? Ke knows better than the Chang brothers.”
Chen alleged that since 2012, before Chang Yung-fa’s death, EMC has executed a number of equity and real estate transactions with EIS, resulting in the outflow of tens of billions of Taiwanese dollars from EMC and its subsidiaries.
Chen said: “I believe that Chang Kuo-hua and Ke have sold assets of around TW$30 billion (US$930 million), infringing on the heirs’ interests. Now that Chang Kuo-wei wants to pursue the case, is it possible that the transactions could be invalidated, causing EMC to suffer huge losses of tens of billions of dollars?”
The latest twist in the fallout between the Chang brothers comes after the Taiwanese courts upheld the late Chang Yung-fa’s will. The patriarch’s death precipitated a battle between Chang Kuo-wei and his half-brothers for control over the Evergreen group, which includes Evergreen Marine Corporation and EVA Airways. In the past decade, EIS has sold many shares in EVA Airways in a move that was perceived to separate the shipping and aviation businesses. Kuo-hua is said to be keen on controlling the shipping business.
Kuo-Wei was EVA Airways’ chairman, but was pushed out of the Evergreen group by his brothers. He went on to establish Starlux Airlines, but is thought to retain shares in EIS. With his brothers, he also inherited shares in EVA Airways and hotels in Taiwan, China, Paris and Bangkok. In September 2022, Kuo-cheng, appeared to ally with Kuo-hua and joined the board of EVA Airways in 2023.
EMC has not responded to Container News’ requests for comment.
Martina Li
Asia Correspondent
