Taiwanese shipping company Yang Ming Marine Transport Corporation (Yang Ming) has voluntarily suspended the trading of its stock on the Taiwan Stock Exchange from April 20 to May 3, 2017.
The suspension is a “standard procedure” amid the company’s recapitalization plan announced earlier this year, according to Yang Ming. The recapitalization plan is said to be one of the several components of Yang Ming’s comprehensive plan aimed at improving the company’s financial structure.
“Our recapitalization plan will initially allow Yang Ming to reduce its equity capital, after which infusion of new capital is then obtained from various private and public investors,” the company said.
The company did not disclose the identity of its investors saying that it would do so “at the appropriate time”.
During the pause, Yang Ming’s outstanding issued shares will be reduced to an approximate 1.4 billion shares, with a new share value anticipated to be about two times the share price prior to April 19.
Other components of Yang Ming’s plan include measures to improve the company’s operational efficiency and reduce its cost.
Furthermore, according to the recent reports from Reuters citing a company source, Yang Ming has cut its container service to Iran due to concerns about rising tensions in the country.
When contacted, Yang Ming told World Maritime News that it “ceased the service to Iran due to loop services adjustment”.
In 2016, Yang Ming posted a full-year net loss of USD 493 million, significantly widened when compared to a loss of USD 258 million seen in 2015.
Nevertheless, due to recent improvements in the shipping sector, along with increased cargo volumes, Yang Ming said that it has cut its business loss for the 4th quarter of 2016 to NTD 1.88 billion (USD 62 million), and that it “remains optimistic for continued improvements into the 1st quarter of 2017.”
Source: World Maritime News (LF)
Source: World Maritime News