[Epoch Times News on August 21, 2021](Epoch Times reporter He Shanru reported) Bandung, the owner of the Fortune Global 500, formerly known as the “Shuanghui” Group, a well-known meat brand in China, After repeated thorny disputes, he first became the focus of public opinion because of his rupture with his eldest son, and then the 300 founding veterans of Shuanghui raised disputes over equity.
Hidden Secrets Revealed by Father and Son
Wan Hongjian, who is regarded as the successor of the hundreds of billions of empires controlled by the family, said he was very and very afraid of his father, Bandung. In June of this year, his father Bandung was about to appoint the former chief financial officer CFO as president. Wan Hongjian went to the Bandung office to express his opposition. “Before I spoke, Bandung was furious, so the conversation turned into anger.” Wan Hongjian said in an interview with a reporter from China Business News.
Shen Ruifang, Wanlong’s personal secretary, appeared at this time and scolded Wan Hongjian out. Wan Hongjian, who felt that he had been abandoned by his father, “completely collapsed” immediately, “I shouted’Go!’ I slammed the door against the wall with my fist and hit the glass wall cabinet with my head.” Shen Ruifang called the security guard to come in and call Wan Hongjian. When he fell to the ground, the 82-year-old Wan Long called to take photos of Wan Hongjian, who was full of blood.
On June 17, Wanzhou International issued an announcement stating that because Wan Hongjian “recently committed an improper attack on the company’s property, the company believed that he was unable to perform his responsibilities as a director of talent, prudence and diligence. Therefore, his actions The positions of executive director, vice chairman of the board of directors, the company’s environmental, social and regulatory committee, the company’s food safety committee, and the group’s vice president have been removed, with immediate effect from June 17, 2021″. Wan Hong was built as “a waste prince”.
In July, Wan Hongjian successively accepted media interviews, exploding some materials that were not conducive to Bandung and the company.
On August 12, Bandung announced his resignation as CEO of Wanzhou International. Former CFO Guo Lijun took over. At the same time, Wan Hongwei, his youngest son, was appointed as Vice President and Vice Chairman of the Board of Directors. This move was interpreted as Wan Hongjian completely out of the family business.
In the middle of the night on August 17, Wan Hongjian issued a letter titled “Father in My Eyes and Bandung” in the circle of friends, disclosing that Shen Ruifang was named a secretary, but he had lived in Bandung for more than 20 years and had a daughter. Shen Ruifang also controlled Bandung’s external communication, and once asked Wan Hongjian to contact his father through her. Wan Hongjian’s mother was left alone in her hometown in Luohe, Henan. Bandung did not allow her sons to take her to Hong Kong.
The letter also disclosed the reason why Bandung insisted on appointing former CFO Guo Lijun as CEO because this person was obedient and accompanied Bandung every day in the Ritz-Carlton Hotel in Hong Kong; when the company was reorganized and listed, Bandung had accepted shareholder CDH The invested 5% of the equity was then privately sold and received 200 million US dollars in income without paying taxes.
In addition to the estrangement in the family relationship itself between the father and son, Wan Hongjian opposed Bandung’s opinion on Bandung’s acquisition of Smithfield, a large American meat company. Wan Hongjian, once regarded as the “prince” of this 100 billion empire, disagrees with the US$7.1 billion acquisition, thinking that American meat products such as Bacon are not the direction of Shuanghui’s business. He believes that Bandung also knows this, but the acquisition of Bandung is not for the sake of Shuanghui, but for the transfer of assets.
As soon as the letter came out, the Hong Kong stock Wanzhou International’s share price fell 10%, and the A-share Shuanghui Development’s share price fell 7%.
Wanzhou International issued a statement the next day, stating that “the allegations are untrue and misleading, and reserves the right to pursue legal responsibility from Wan Hongjian and those responsible for the allegations.”
Bandung himself has remained silent.
In the two months of “Father and Son Fighting”, about 180 people from the original Shuanghui founding veterans filed equity interest disputes.
Bandung is a business wizard and a strong man. He not only turned the state-owned Luohe Meat Processing Plant into profit in the 1980s, but after it became bigger, he successfully introduced foreign investment, allowing Goldman Sachs and CDH Investment to purchase 100% of Shuanghui at a price of 2 billion yuan. Equity; followed by a management buy-out (MBO), calling for all employees to hold shares; Shuanghui Development was listed on the Shenzhen Stock Exchange in 1998; in September 2013, it acquired the largest hog and meat processor and listed company Smithfield (Smithfield) in the United States for $7.1 billion. ); In the following year, Bandung packaged Shuanghui’s domestic assets, Smithfield and hundreds of subordinate companies to be listed in Hong Kong, for Wanzhou International.
Wanzhou International was among the top 500 in the world in 2016. In August of this year, Forbes announced that Wanzhou International once again appeared in the top 500 in 2020, ranking 474th.
Through a dazzling series of equity arrangements, Bandung turned the original state-owned factory into a family business. One of the important links is full-staff shareholding. All-employee stock ownership at the time was able to resist the question of “appropriating or selling state-owned assets.” At the call of Bandung, about 300 middle and upper-level managers paid for each one, with a minimum stake of 200,000 yuan.
But these veterans now allege: “I did not get a penny of dividends; if you want to withdraw, the equity can only be sold to major shareholders headed by Bandung at a discount on the platform company’s net assets; what makes them even more uncomfortable is Bandung’s Secretary Yang Zhijun can surpass everyone, and the equity can be freely disposed of at market prices.”
According to the situation disclosed in Wan Hongjian’s “Report Letter”, the secrets of Bandung are in the hands of Yang Zhijun, so Bandung allows him to enjoy special benefits.
More than one hundred of the original more than 300 veterans have already transferred their equity at a discounted price, and they are no longer shareholders of Wanzhou International.
What consequences will Bandung face?
According to a report on Sina.com, the financial self-media “City Circle” interviewed a lawyer for this. In a nutshell, the details of Bandung’s acquisition of 5% of the equity are not clear, and it is impossible to judge whether it is criminally liable. If it is only $200 million in tax evasion, you only need to pay the tax for the first time. If the investigation reveals that criminal responsibility is involved, it depends on the specific nature.
After Wan Hongjian made a public report, the relevant departments are expected to follow up the investigation.
Editor in charge: Sun Yun #