Taiwan Nav buys Yang Ming stake

Compatriot owner spends $6.5m on container line’s shares in private sale.

Shipowner Taiwan Navigation has snapped up a stake in compatriot boxship line Yang Ming.

The company said it took part in a private placement to acquire 19.08m shares at TWD 10.48 each, for a total spend of TWD 200m ($6.5m).

It has a 1.36% holding after a capital reduction.

Taiwan Navigation described the move as a strategic investment.

It ranks as the fifth-largest investor based on the latest move alone, but it is not clear if it already had shares in Yang Ming.

The biggest shareholder is the government with 33.33%. No other investor has more than 3%.

Yang Ming sold 161m shares in total, for proceeds of TWD 1.69bn.

Last month, the owner said it could draw on a state fund as it prepares to recapitalise in the downturn.

The company can access a $1.9bn pot made available for the shipping industry.