Disagreements have erupted between the children of Y.F. Chang, the deceased founder and chairman of the Evergreen Group, which owns ocean carrier Evergreen Line and EVA Air among others.
Evergreen says negotiations among all the sons of Y.F. Chang, the founder of Taiwan’s Evergreen Group, “are continuing to ensure that the all affiliated Evergreen companies will maintain stable and sustainable operations, based on the principles and best practices of corporate governance. Evergreen will provide more information when negotiations are finalized.”
Chang Yung-fa, who founded Evergreen Line with a single ship in 1968, died on Jan. 20 after growing it into the fourth largest container shipping after Maersk Line, MSC, and CMA CGM. (Now technically the fifth largest in the wake of the merger between COSCO and China Shipping that is already underway.) The Evergreen Group of companies also includes EVA Airlines.
According to news reports, a statement released last week revealed Y.F. Chang’s youngest son, Chang Kuo-wei, who is also chairman of EVA Airways, was chosen by his father to be chairman.
Taipei Times reported that the publicly listed units — Evergreen International Storage & Transportation Corp., Evergreen Marine Corp and EVA Airways — said in separate filings with the Taiwan Stock Exchange that their operations would not be affected by the succession process.
A subsequent report appearing in the China Post, said the three older brothers and and their sister disbanded the Evergreen Group’s top management team and moved employees back to individual units dealing with individual lines of business such as liner shipping, logistics and aviation. The paper also reported Wednesday Chang Kuo-wei lost his post as group chairman with the abolition of the central office.
Taipei Times said filings with the Taiwan Stock Exchange indicate the three older bothers own 34.7 percent of Evergreen Marine and 54.56 percent of Evergreen International Storage & Transportation Corp.
The events at Evergreen were called a “soap opera” by the Taipei Times, but one that has a familiar plot. In an editorial, it said “the operation of family businesses has become the biggest problem of domestic business groups and is turning into a nightmare in terms of the sustainable operation of publicly traded companies.”
“Three-quarters of publicly traded Taiwanese companies are controlled by families and 10 families control one-quarter of the value of the TAIEX. Infighting among heirs is one of the main reasons for fluctuation in these companies’ market value,” the paper continued.
Struggle over control of Evergreen Group intensifies
