Taiwanese containerlines Yang Ming Marine Transport has released an announcement to clarify market rumours about the company’s financial status.
Yang Ming suspended stock trading on April 20 through to May 4, which triggered rumours that the company was suffering from financial difficulties.
Yang Ming clarifies that the company’s financial status is fine and the stock suspension is a normal procedure for a previously announced capital reduction plan which will decrease its share count by about 53% from $3bn to $1.4bn.
The recapitalisation move includes a stock consolidation as well as the injection of fresh capital from unspecified new investors. The first stage of the injection of capital will be from various government and private entities, including banks and financial institutions in return for new stock.
The company said the capital reduction plan would optimise the company’s capital structure.
Yang Ming, which has not been profitable since 2013, posted a NT$14.91bn ($492m) loss for the year of 2016, more than double 2015’s loss of NT$6.46bn.