Wang Laboratories Inc may sell a 30% stake in its Taiwanese subsidiary to a local conglomerate, Reuters reports from Taipei. According to the newswire, President Enterprises Inc, which is inter alia Taiwan’s largest food processor, is negotiating to pay about $104m for the stake in Wang Industrial Co Ltd, which had been hoping to float on the Taipei stock exchange, but had had its application turned down by the local Securities & Exchange Commission – on the grounds of the subsidiary’s close ties with its financially-troubled parent according to a Commission official. By selling a holding to the highly regarded President, this handicap could be minimised and the flotation allowed to proceed, analysts commented. The price being talked of puts an implied valuation of about $350m on the Wang Industrial Co business.
