TAIWAN's Yang Ming Marine Transport Corp. has secured more than US$54 million via a private stock offering, according to multiple media reports.
The reports cite a stock exchange release in which the Taiwanese ocean carrier said it has sold 161 million new shares to the state-run National Development Fund, Taiwan Navigation and a handful of unnamed institutional investors for a total of NTD 1.69 billion (US $54.4 million).
The company in late January instituted a recapitalisation plan aimed at providing "immediate benefits" to its balance sheets and improving liquidity.
"In a December 22, 2016 shareholders' meeting, the shareholders voted to approve a stock consolidation plan," Yang Ming said at the time.
The move came shortly after the investment research arm of maritime industry consultant Drewry issued a report expressing concerns about the company's high level of debt, even going as far as to compare Yang Ming to now-insolvent South Korean carrier Hanjin Shipping.
Back in November 2016, the Government of Taiwan announced a $1.9 billion aid package for the country's shipping industry, to which both Yang Ming and compatriot line Evergreen will potentially have access.
Yang Ming has reported losses totalling NTD 12.98 billion through the first nine months of 2016 compared with a loss of about NTD 3.98 billion in the same 2015 period. Revenues at the company stood at NTD 83.9 billion for the first nine months of the year compared with NTD 97.7 billion in 2015.
Source: SchednetPrevious Next