Toyo Ventures’ largest shareholder offers to take it private at 28 sen per share

Tuesday 20 Oct 2026

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KUALA LUMPUR (Oct 19): Toyo Ventures Holdings Bhd (KL:TOYOVEN) has received an offer from its largest shareholder to take the ink manufacturer private at 28 sen per share.

The takeover will be through a selective capital reduction and repayment, according to an exchange filing. Eng Lian Enterprise Sdn Bhd, a vehicle of Yvonne Po Leng Lam, and its connected parties together control about 13% in Toyo Ventures.

The offer price of 28 sen per share represents a 16.67% premium over Toyo Ventures' closing price of 24 sen per share on Oct 16, before the proposal was announced. It also represented a premium of 13.82% to 22.32% over the company’s five-day and one-year volume-weighted average market price.

Toyo Ventures' issued share capital as at the latest practicable date (Oct 13, 2026) was approximately RM192.7 million, comprising 165.90 million ordinary shares.

The joint offerors are Eng Lian (L) Inc and Bukit Asa Sdn Bhd, while Eng Lian Enterprise is the ultimate offeror.

Po is the company’s largest shareholder with a 0.1% direct and 12.1% indirect interest via Eng Lian Enterprise Sdn Bhd. Ng Jing-Yi —managing director of Eng Lian Enterprise — is a non-independent and non-executive director of Toyo Ventures.

Including Po, the remaining eight persons acting in concert are Dr Ng Lu Siong @ Ng Soon Huat, Ng Ling Li, Lim Gaik Hwa, The Nehsons Trust Company Bhd, Lu Pat Sdn Bhd, Geraldine Marie Tse Chian Ng, Ng Earn Chin and Ng Tee Chuan.

Po’s spouse, Lu Siong, is the director of Bukit Asa and an alternative director of Eng Lian Enterprise.

The offerors said the proposed selective capital reduction and repayment exercise would allow the group to refocus its resources on its core businesses and implement its long-term business strategies amid a challenging operating environment.

The proposed selective capital reduction and repayment exercise will also enable the company to operate as a private company, thereby reducing costs, administrative requirements and management resources associated with maintaining its listing status on Bursa Securities, they noted.

This is against the backdrop that Toyo Ventures’ core businesses are expected to continue to operate in a challenging business environment, citing intense pricing competition, volatility in raw material costs and foreign exchange rates, as well as uncertainties in the global economy.

The group’s power generation segment is no longer expected to contribute to its operating results following the termination of the Song Hau 2 power plant project. Its future performance is expected to depend primarily on the performance and growth of its existing core businesses and any recovery from its investment in the Vietnam power plant project.

Toyo Ventures recorded a net loss of RM436,000 in the first quarter ended June 30, 2026 (1QFY2026), versus a net profit of RM9.66 million a year ago, despite revenue rising 28.8% to RM22.24 million from RM17.27 million.

The weaker quarterly earnings were mainly due to the absence of a one-off gain of RM2.09 million from the disposal of assets held for sale and an unrealised foreign exchange loss of RM1.01 million, compared to an unrealised foreign exchange gain of RM8.30 million recorded a year earlier.

As at Oct 13, Toyo Ventures had 262 million irredeemable convertible unsecured loan stocks (ICULS) outstanding, issued at RM1.20 each as part of a debt-settlement exercise involving RM354 million owed to a substantial shareholder. The five-year ICULS will expire on April 24, 2029.

Of the total ICULS, Eng Lian (L) held 162 million (61.8%) directly and another 75 million (28.6%) indirectly via MTrustee Bhd. Bukit Asa held 21.67 million (8.3%) and Lu Siong held 3.33 million (1.3%).

The proposal is subject to approval by non-interested shareholders at an extraordinary general meeting and confirmation by the High Court of Malaya for the reduction of the issued share capital, and other relevant approvals or consents, where required.

RHB Investment is the principal adviser of the proposed selective capital reduction and repayment exercise.

According to the company's website, Toyo Ink Group Bhd was incorporated in 2002 and listed on Bursa Malaysia’s Main Board on Nov 10, 2003. In 2020, it underwent an internal reorganisation and transferred its listing status to a new holding company, Toyo Ventures.

Toyo Ventures’ shares were suspended until 5pm on Monday (Oct 19) pending the announcement. The stock last traded at 24 sen, valuing the company at RM39.8 million.

The stock had rebounded 37% from this year's low of 17.5 sen in March, but remained 9.4% below its closing price at the start of the year.

Edited ByPresenna Nambiar

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