KUALA LUMPUR: Toyo Ventures Holdings Bhd today confirmed the termination of its Vietnam thermal power plant project adding that it will seek legal advice recourse to explore appropriate actions and remedies as per the terms of its contract.
The company said it is currently assessing the implications of the termination of the Build-Operate-Transfer (BOT) contract from the Vietnamese government for the Song Hau 2 Thermal Power Plant Project.
In a filing with Bursa Malaysia Securities, Toyo Venture said its subsidiary, Song Hau 2 Power Company Ltd (SH2P) received the notification from Vietnam's Ministry of Industry and Trade (MOIT) dated July 1, 2024.
The MOIT's letter states that despite the expiration of the 90-day period following the issuance of the "Notice of Intention to Terminate," SH2P has not resolved the financial arrangements required for the project.
"Consequently, under Article 23.4 of the BOT Contract, the MOIT has formally terminated the BOT Contract for the Project.
"As the company navigates through this phase, any significant developments concerning the notice and/or the project will be promptly communicated through subsequent announcements," it said.
The company's stock fell as much as 25 per cent from yesterday's close after news broke that the Vietnam government had terminated its BOT contract.
It pared some of its losses to end the day 23 per cent lower at RM1.06, giving it a market capitalisation of RM140.8 million.