KUALA LUMPUR: Toyo Ventures Holdings Bhd's share price fell as much as 25 per cent on Thursday after news of the termination of a Vietnam project, which the company said would be delayed, surfaced.
A Vietnamese-language business newspaper reported, citing a notice of intention to terminate dated April 1, 2024, said the Vietnamese government had terminated the Song Hau 2 project due to Toyo Ventures' subsidiary company failing to comply with critical terms outlined in the Build-Operate-Transfer (BOT) Contract.
Toyo Ventures last traded 21.7 per cent lower to RM1.08 a share, giving it a market capitalisation of RM146.2 million. It was one of the top losers of the market.
On July 1, 2024 Toyo Ventures announced that its wholly-owned subsidiary, Song Hau 2 Power Company Ltd, has extended the start date for its thermal power plant project in Vietnam to on or before Dec 31, 2024.
In a filing with Bursa Malaysia, the company said it had entered into a second addendum with Sunway Construction Sdn Bhd and Power Engineering Consulting Joint Stock Company 2.
Today, a Vietnamese-language business newspaper reported that the Vietnamese government terminated the Song Hau 2 project due to Toyo Ventures' subsidiary company failing to comply with critical terms outlined in the Build-Operate-Transfer (BOT) Contract.
The Ministry of Industry and Trade issued Document 2109/BCT-DDL dated April 1, 2024, notified Song Hau 2 Power Company Ltd of the "Violation of the Project Developer" and the intention to terminate the BOT Contract.
The 90-day deadline has since expired but the company has not yet resolved the financial arrangements for the project.
"Therefore, according to the provisions of Article 23.4 of the BOT Contract, the Ministry of Industry and Trade also officially notified Song Hau 2 Power Company Ltd about the termination of the project's BOT Contract," the news report said.
As at press time no announcement ws made on the matter.