Yang Ming suspends share trading
The Taipei-headquartered shipping line Yang Ming has released a statement in reaction to a number of press reports about its latest move. The line insists that it voluntarily suspended the trading of its stock on the Taiwan stock exchange from 20 April to 3 May, in compliance with the stock exchange’s regulations and its pre-approval.
The "brief pause" has been declared as "a necessary step taken in furtherance of and consistent with Yang Ming’s recapitalization plan which was announced in early 2017". The carrier talks of a routine measure in accordance with the recapitalization plan which "will initially allow Yang Ming to reduce its equity capital, after which infusion of new capital will be obtained from various private and public investors." The identity of these new investors has not yet been disclosed.
During the trading break, 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 19 April. Moreover, Yang Ming has underlined its access to government-backed funding of USD 1.9 billion. (kd)