This article first appeared in The Edge Malaysia Weekly on October 20, 2025 - October 26, 2025

Low-profile Eng Lian (L) Inc has reduced its stake in Toyo Ventures Holdings Bhd (KL:TOYOVEN), a move that marks a new chapter for the company that once had an ambitious plan to build and operate a mega coal-fired power plant in Vietnam.

According to a filing with Bursa Malaysia last week, Eng Lian disposed of 32.8 million shares in Toyo, leaving it with less than 10 million shares. The disposal reduces Eng Lian’s equity interest in Toyo to 5.9% from 31.8% as at June this year.

Eng Lian, one of the city’s oldest property developers and real estate owners, was initially a substantial shareholder in Toyo, holding a 16% stake. However, last year, it converted cash advances to Toyo into equity — a move that made it the company’s largest shareholder.

The disposal of shares comes as no surprise, given that Toyo is saddled with a power plant project that has already incurred some RM439 million in expenditure but has yet to get off the ground.

The company received the mandate to build the Song Hau 2 thermal power plant in Vietnam in December 2020. The following month, Toyo entered into an agreement with China Energy Engineering Investment Corp (CEEIC) to build the power plant that was estimated to cost some US$3.2 billion (RM13.5 billion) then.

However, in September 2021, the deal between Toyo and CEEIC was called off after the Chinese government reduced financing for coal-fired thermal power plants. Since then, Toyo has had problems securing a financing arrangement that is acceptable to the Vietnamese authorities.

In July 2024, Toyo received a letter of termination for the Song Hau 2 power plant project from Vietnam’s Ministry of Industry and Trade. Although Toyo is still appealing the decision and hoping for an amicable outcome, the prospects are slim for now.

Now that Eng Lian is no longer Toyo’s largest shareholder, it will be interesting to see if the new substantial shareholder would be able to get the power plant off the ground.

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