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Foxlink and Yong-Wei to Divest Stake in SunRise Energy
Industrial Services · Engineering & Construction · economic_daily · 2026-08-31
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Foxlink and Yong-Wei are divesting their stakes in SunRise Energy through a tender offer to mitigate financial risks and limit exposure to ongoing losses.
What Happened
Divestment Decision: Foxlink and Yong-Wei have announced their participation in a tender offer initiated by the son of SunRise Energy's former general manager. By selling their shares at NT$0.05 per share, both companies will relinquish control over SunRise Energy.
Financial Context: SunRise Energy's subsidiary, Fuwei Energy, has suffered massive losses due to cost overruns in offshore wind projects, resulting in a negative net asset value per share as of June 30. Additional pressures from overseas subsidiary liquidations and bank repayment demands have exacerbated the financial risk.
Debt Burden: The SunRise group faces total liabilities of approximately NT$16.9 billion. With potential defaults of NT$1.5 billion following the liquidation of Baowei, SunRise Energy faces significant exposure to bank claims and guarantee obligations.
Shareholder Protection: Foxlink and Yong-Wei are taking this step to prevent further losses from impacting their own financial statements. By exiting their positions, the companies aim to protect shareholder value and isolate themselves from SunRise Energy's ongoing financial instability.