The printing ink manufacturer cum power plant investor fell as much as 35 sen or 25% to RM1.03 this morning. It pared some of its losses to settle at RM1.06 at the mid-day break, valuing the group at RM140.9 million. More than 7.6 million shares changed hands.
State-owned business newspaper Dau Tu reported that the BOT contract for the Song Hau 2 thermal power plant has been terminated over the failure to meet the deadline for a financial close.
Citing a document issued on July 1, 2024 by Vietnam’s ministry of industry and trade, the newspaper reported that Toyo’s wholly owned subsidiary Song Hau 2 Power Company Ltd (SH2P) was notified of the failure to comply with one of the clauses of the contract.
At the time of writing, Toyo had not made any disclosure on the matter via a Bursa Malaysia filing.
In its last bourse filing on July 1, Toyo announced it had postponed the commencement of engineering, procurement, commissioning and construction (EPCC) works for its thermal power plant project in Hau Giang province by up to six months.
It added it had entered into a second addendum to the EPCC contract with Sunway Construction Group Bhd and Vietnam’s Power Engineering Consulting Joint Stock Company 2 (PECC2) extending the date for the issuance of the notice to proceed (NTP) to a date on or before Dec 31, 2024, or such other date as the parties may mutually agree upon.
Under the previous addendum to the EPCC contract inked last October, the NTP was to have been issued by June 30 this year. The contractor, which is the consortium between Sunway and PECC2, will only commence work once the NTP is issued.
The project was scheduled to be completed in four-and-a-half years. The initial EPCC contract, worth US$2.42 billion (RM11.4 billion), was signed in March 2023.
The Edge had previously reported that Toyo was facing difficulty to secure sufficient financing for the project in time before the deadline.
The project’s exclusive mandated lead arranger, Export-Import Bank of Malaysia Bhd, was appointed in November 2023 to arrange the proposed syndicated financing facilities of up to US$2.42 billion for the project.
Toyo announced last month that SH2P had secured a US$980 million (RM4.62 billion) equipment financing facility from i-Power Solutions Pte Ltd to finance up to 70% of the invoice amount for the procurement of equipment required for the EPCC works of the project.