30.4 C
Hamburg
Thursday, August 13, 2020
Home News Temasek unit to make interim investment in PIL

Temasek unit to make interim investment in PIL

A unit of the Singapore government’s investment company Temasek Holdings has agreed to make an initial investment in beleaguered liner operator Pacific International Lines as part of what is essentially a state bailout.

The family-run PIL, headed by MD Teo Siong Seng, confirmed on 27 May that it was in talks with Temasek unit Heliconia Capital, as the company’s liquidity became threatened by poor performance that has been compounded by the Covid-19 pandemic.

In a statement sent to Container News, PIL said, “Our discussions with Heliconia have been progressing well and we can confirm that a deal has been reached for interim funding that would allow the company to meet its most urgent operational needs. On the broader investment contemplated by Heliconia, PIL will make further announcements when there are material developments.”

PIL MD Teo Siong Seng, denied the company were in financial trouble in April.

The amount of this initial lifeline has not been disclosed but is said to be between US$100 million and US$110 million.

PIL’s losses had narrowed to a net loss of US$65 million the first half of 2019, compared with US$141.18 million in H1 2018. The company is delaying the release of its 2019 financial statements until the bailout discussions are completed.

In April, PIL issued a statement to refute rumours that the company was facing bankruptcy. The company has however, been doing all it can to self-rescue, including exiting the Transpacific trade, selling a subsidiary, Pacific Direct Line, and a number of ships. And last week, it was reported that PIL was considering the sale of its headquarters.

Teo is known to be well connected with Singapore’s ruling elite, having previously served as a Nominated Member of Parliament and President of the Singapore Shipping Association and Singapore Chinese Chamber of Commerce and Industry. Teo is the current President of the Singapore Business Federation.

Martina Li
Asia Correspondent

- Advertisment - LR Sustainability Decarbonisation Digital Adverts

Latest Posts

Hapag-Lloyd diverts service from strike-hit Montreal

German carrier Hapag-Lloyd has said that due to the continuing industrial dispute at the Canadian Port of Montreal it will divert its vessel call...

Port of Beirut CT restarts operations

Nine days after one of the worst events in containerised cargo history the Port of Beirut has reopened after what has been called only...

MSC keeps updating its service network

The Mediterranean Shipping Company (MSC) has announced the launch of its Golden Horn service, which will complement its existing intra-Asia network, linking China, Korea...

Bunker indexes see slight upturn

Global Bunker Market remains in the same holding mode that has prevailed in the last 25 days approximately. The MABUX World Bunker Index showed a...

CU Lines joins South Korea-Vietnam route shake up

China United Line (CU Lines), is launching a service between South Korea and South East Asia for the first time after purchasing slots on...