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NYK to fund fleet expansion from $1.6bn share issue

NYK to fund fleet expansion from $1.6bn share issue

Tokyo: Japanese shipping and logistics powerhouse Nippon Yusen Kaisha (NYK Line) has revealed plans to issue 427m new shares worth ¥142.5bn ($1.6bn) collectively in order to fund capital expenditure including the acquisition of vessels. The company is also reported to be considering the sale of 180m additional shares as well as an exercise option of 27m shares for the international offering.

The issue is expected to bolster NYK's bottom line since the company is anticipating a loss of ¥27bn for the financial year ending March 31 next year. The turbulent economic climate, with container markets drastically impacted, led the company to declare a net loss of $325.4m for the half year ending September 30, 2009. Accordingly NYK has restructured its New Horizon 2010 medium-term management plan, paring down its vessel expansion plans to a final fleet soze of 835 ships by the end of next year, against the 1,000 ships previously planned.  [12/11/09]

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