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Family feud at world’s largest pork processor goes up a notch as father dismisses son’s fraud claims as ‘untrue and ‘misleading’
- World’s biggest pork producer said allegations by Wan Hongjian are ‘untrue and misleading’
- Wan Hongjian stripped of his directorship and other roles at the company in June
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WH Group, the world’s biggest pork producer, struck back a second time on Monday at allegations by a former director that shaved US$1.4 billion off its market value last week.
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The Hong Kong-listed company, which owns Smithfield Foods, reiterated that recent allegations by Wan Hongjian, one of the sons of its founder Wan Long, were “untrue and misleading” before offering a lengthy “clarification” of the accusations on Monday. It issued a separate statement denying the allegations on August 18.
Wan Hongjian, 52, alleged in mainland media last week that his father and the company’s former finance chief made wrong financial decisions that led to losses at the company.
WH Group stripped Wan Hongjian of his directorship and other roles in June for “misconduct of aggressive behaviours against the company’s properties”, the company said. WH Group has not provided additional information on the circumstances.
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Raise a pig remotely amid the coronavirus pandemic in China
Raise a pig remotely amid the coronavirus pandemic in China
The company’s share price fell by 11.3 per cent to HK$5.95 on August 19, its biggest one-day drop since the end of March and erased HK$11.2 billion (US$1.43 billion) from its market capitalisation in Hong Kong. The company’s shares rose 4.8 per cent to close at HK$6.12 on Monday.
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Wan Long, the company’s 80-year-old founder, stepped down as CEO on August 12 after the company reshuffled its top leadership. Wan Long, who owned 23.34 per cent of the company at the end of last year, will continue to serve as executive director and chairman.
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