Report: Yang Ming raises $54m in private share sale

The Taiwanese ocean carrier has sold 161 million new shares to the state-run National Development Fund, Taiwan Navigation and a handful of unnamed institutional investors, according to multiple media reports.    Yang Ming Marine Transport Corp. has secured more than $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 10.48 new Taiwan dollars (NTD) per share for a total of NTD 1.69 billion (U.S. $54.37 million).
   The company in late January instituted a recapitalization plan aimed at providing “immediate benefits” to its balance sheets and improving liquidity.
   “In a Dec. 22, 2016 shareholders’ meeting, the shareholders voted to approve a stock consolidation plan,” Yang Ming said at the time. “This move was designed to pare down accumulated loss. Additionally, it was announced at the meeting that Yang Ming would receive injection of fresh capital from new investors. The first stage of this injection of capital will be from various government and private entities, including banks and financial institutions. Yang Ming will issue new stock to these investors, and with the new capital, Yang Ming expects immediate benefits to its balance sheets.”
   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 totaling NTD 12.98 billion through the first nine months of 2016 compared with a loss of about 3.98 billion NTD 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.