KUALA LUMPUR (April 10): Toyo Ventures Holdings Bhd (KL:TOYOVEN) said on Thursday that its discussions with the Vietnamese government over the termination of the Song Hau 2 thermal power plant project will proceed beyond the initial 45-day period.

The company said its indirect wholly owned subsidiary, Song Hau 2 Power Company Ltd (SH2P), had received confirmation from Vietnam’s Ministry of Industry and Trade (MOIT) agreeing to extend the period for "good faith discussions".

In a filing with the exchange, Toyo Ventures reaffirmed its commitment to continue engaging in discussions with the MOIT.

In July 2024, Toyo Ventures confirmed that the Vietnamese government had terminated the Song Hau 2 power plant contract, citing the company’s failure to secure financing within the 90-day notice period.

However, just a month prior to the termination, Toyo Ventures announced that SH2P had secured a US$980 million (RM4.41 billion) equipment financing facility from i-Power Solutions Pte Ltd. The facility was intended to cover up to 70% of the equipment procurement cost for the project’s engineering, procurement, commissioning, and construction works.

Following the termination, the financing facility was no longer applicable.

This also led Toyo Ventures to issue a notice of dispute to the MOIT on Jan 6 this year, triggering the start of the 45-day discussion period as stipulated under the contract.

Shares in Toyo Ventures rose three sen or over 11% to close at 29 sen on Thursday, giving the company a market capitalisation of RM48.11 million. Year to date, the counter has plunged by over 43%.

Read also:
Toyo Ventures issues dispute notice to Vietnamese govt over power plant termination
Toyo Ventures' US$980m equipment financing facility voided following termination of Vietnam thermal power plant project
Toyo Ventures confirms termination of Song Hau 2 thermal power plant project in Vietnam
Toyo Ventures defers commencement of EPCC works for Vietnam thermal power plant
Financing for Toyo Ventures’ Vietnam power plant under scrutiny