Japan's Yusen KK shipping to make Taiheiyo Kaiun 100% subsidiary

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

30 May 2009

Japanese shipping firm NIPPON YUSEN KK announced that it will convert troubled group firm TAIHEIYO KAIUN CO. into a wholly owned subsidiary by the end of the year. Taiheiyo Kaiun has fallen into financial straits for such reasons as the cancellation of subcharter contracts, and Nippon Yusen determined that quick action was necessary for the group's sake.
* The company will cover Taiheiyo Kaiun's losses and reorganize its business.
* As a first step, Nippon Yusen will inject 7.49 billion yen (US$77.31 million) in fresh capital through a third-party allocation of new shares on June 12, increasing its stake in Taiheiyo Kaiun to 68.5 per cent from the current 22.7 per cent.

Source: Trading Markets