Taisun Aims to Acquire StreetPay Equity; Street Financial Tech Fires Back: Auction Process 'Extremely Distant'

Long-established food manufacturer Taisun (1218-TW) held a material information press conference on the 13th, announcing its intention to participate in the auction bidding for 100% equity in StreetPay. In response, Street Financial Technology swiftly issued a strong statement rejecting the claim, asserting that the auction procedure is 'extremely distant.' It accused Taisun of deliberately creating a false impression that ownership transfer is imminent and criticized its behavior as highly illogical—simultaneously breaching contracts while publicly declaring acquisition intentions—raising suspicions of stock price manipulation and insider trading.

Regarding Taisun's assertion that it has already executed provisional seizure of 100% equity in StreetPay and will join the auction, Street Financial Technology released four key statements. First, compulsory enforcement involves complex procedures including seizure, valuation, price inquiry, base price determination, public announcement, and auction. Currently, only the seizure phase has been completed, and Street Financial Technology has already filed legal remedies. Holding a material announcement before any auction has even commenced clearly misleads investors and may violate Article 155 of the Securities and Exchange Act concerning dissemination of rumors or false information.

Street stated that the civil litigation between both parties remains pending at the Taiwan High Court. Additionally, the legitimacy of current Taisun Chairman Liu Wei-long’s authority to initiate litigation and provisional execution is currently under review by the Intellectual Property and Commercial Court. The legal basis for the provisional seizure relied upon by Taisun carries a high risk of being overturned. Taisun’s aggressive push despite known flaws suggests potential stock price speculation.

Street emphasized that comprehensive judicial remedies have been initiated, and until a final court ruling is made, the equity and control of StreetPay remain unaffected. As Taiwan’s leading electronic payment provider, fund disbursement, system operations, and user rights are strictly regulated by the Financial Supervisory Commission (FSC), ensuring no disruption to daily operations.

Street strongly condemned the situation, noting that both parties originally signed a valid investment agreement. Taisun later maliciously breached the contract during litigation, demanding repayment, and now claims it intends to reacquire the stake via auction—a move entirely contrary to commercial logic. Street urged the FSC and the Taiwan Stock Exchange to closely monitor abnormal fluctuations in Taisun’s stock price and rigorously investigate potential violations of securities laws, including market manipulation.

Reviewing the dispute, Taisun initially invested approximately NT$3.6 billion into Street Financial Technology but filed a lawsuit in 2023 over a control dispute, seeking repayment. In 2025, a first-instance court granted permission for provisional execution. On the 13th, Taisun’s board approved participation in the auction, authorizing a bid amount up to the original investment principal of NT$3.595 billion, with plans to seek shareholder approval at an extraordinary general meeting.

Meanwhile, Taisun reported a shift from profit to loss in its first-half financial results, posting a net after-tax loss of NT$787 million. Besides losses from the oil safety incident and Zhonglian Oils, the impairment of pre-paid investment funds in Street Financial Technology—amounting to NT$520 million—was a major factor dragging down performance.