In an update on its website, Yang Ming said the recapitalisation plan will result in a larger percentage of government owned and controlled interest, beyond the current approximate 33.3% held by the ministry of transportation and communications, MANA correspondent reported.
At a shareholders’ meeting held on 22 December 2016, shareholders voted to approve a share consolidation plan.
“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,” Yang Ming stated.
“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. With this strong showing of government support, it is also expected to help enhance additional private sector investment in Yang Ming.”
The help for Yang Ming followed the announcement of the Taiwanese government’s assistance program for the country’s shipping industry.
“While the predictions for 2017 appear to show some improvements for carriers, Yang Ming remains prepared to take any measure necessary to maintain its competitiveness,” Yang Ming said.