Yang Ming Suspends shares on the Taiwan Stock Exchange
Yang Ming announced it will suspend its shares on the Taiwan Stock Exchange last week, however, also issued a notice to its clients that the decision was made as a “recapitalization plan.” Yang Ming said today the voluntary suspension of the trading of its stock until 3 May was “simply a standard procedure that is routinely carried out in the Taiwan Stock Exchange” when a company is recapitalized. [The Loadstar]
According to The Loadstar, “Yang Ming has been under considerable pressure to clarify its decision to temporarily suspend share dealing, and shippers are worried that the troubled Taiwanese carrier could follow Hanjin Shipping into bankruptcy.” “Yang Ming said today the voluntary suspension of the trading of its stock until 3 May was ‘simply a standard procedure that is routinely carried out in the Taiwan Stock Exchange’ when a company is recapitalised.” It said: “Our recapitalisation 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. At the appropriate time we will announce the identities of those new investors.”
Alessandro Pasetti, The Loadstar’s financial columnist, today described the initial $54.4m raised by the recapitalisation as “a drop in the ocean”. In an analysis on 3 April, Mr Pasetti wrote: “If it keeps performing as it has done in the past few months, and excluding state aid, Yang Ming could run out of money in less than nine months.”
To read full article, click here.