TAIPEI, , Jan. 2, 2019 /PRNewswire/ -- PJ Asset Management (PJAM) recently issued a letter to the board of directors of SinoPac Financial Holdings Company Limited ("SinoPac FHC" or "Company") in December 2018. The letter, which is reproduced below, details concerns regarding Bank SinoPac (the Company's subsidiary) has recently launched civil action against Morgan Stanley as it may have an inadvertent impact to Sinopac FHC's reputation and shareholders' interests. PJAM urges the board of directors in exercising their duties to supervise the subsidiary, to prudently evaluate the appropriateness of this action. The original letter in Chinese can be found on PJAM's official website http://www.pjam.com.tw/.
The Board of Directors
Sinopac Financial Holding Company
Dear Members of the Board,
PJAM and its affiliates currently own more than 8% of the outstanding shares of the Company.
According to the Company's recent announcement on the Market Observation Post System (M.O.P.S.), in order to respond accordingly to the board in clarifying the Far East National Bank ("FENB", Bank SinoPac's subsidiary in US) sale ("Transaction"), Bank SinoPac requested that Morgan Stanley provide all email correspondence between Bank SinoPac's project team and Morgan Stanley during the time Morgan Stanley was commissioned as the financial advisor for the Transaction.
From the above announcement and local news coverage:
Based on the key concerns above, we strongly advise that the board of SinoPac FHC should request Bank SinoPac to confirm if the Transaction details are processed and reviewed properly. However, we believe that the key focus regarding this transaction should be on evaluating the diligence of the project team, implementing sounder employee management, correcting internal control vulnerabilities, reinforcing good corporate governance and the board's oversight - before taking legal action against a third-party financial advisory firm. We sincerely hope that the company can re-evaluate the advantages and disadvantages of this legal action and place the long-term benefit of all shareholders as its top priority.
Local News Reports:
China Times, 10 December 2018, https://bit.ly/2EAu6pB
ETtoday, 10 December 2018, https://bit.ly/2ScuwXg
FTV, 10 December 2018, https://bit.ly/2rAVfRM
Media contact:
Pamela Wu
+886227916668#712
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