Toyo Ink expects to pay US$35mil for consultancy services

  • Business
  • Thursday, 09 Jul 2015

PETALING JAYA: Printing ink maker Toyo Ink Group Bhd, which plans to diversify into the power generation business, is seeking shareholders’ nod to pay US$35mil (RM132.5mil) for consultancy services for the proposed Vietnam power plant project.

The company, whose share price has risen 33% over the last two weeks, told Bursa Malaysia on Thursday that the fee was equivalent to 1% of the US$3.5bil (RM13.25bil) development cost of the 2,000 MW Song Hau 2 coal-fired thermal power plant project.   

The fee payable to Phu My Vinh Consulting Investment and Trading Service Co Ltd (PMV) will be funded by equity and debt financing, and internally generated funds. 

PMV will research and support the implementation process of negotiating for the build, operate and transfer contract, as well as power purchase and land lease agreements pertaining to the power plant with authorities in Vietnam.

Toyo Ink Group said the consultancy services were critical in assisting the company in the project. 

TIGB had entered into a consulting contract with Phu My Vinh Consulting in January following the approval from the Provincial People’s Committee of Hau Giang Province to “the adjustment of the policy on additional planning of the operation and management building with the area of 25ha and the resettlement area of about 15ha” into the power project.

For the financial year ended March 31, the company announced an unaudited net profit of RM1.616mil, down 67% from the previous year. Pre-tax profit for the fourth quarter fell 91% to RM0.3mil mainly due to the gain on disposal of investment properties of RM3.08mil in the previous year’s corresponding period.

Toyo Ink shares were not traded on Thursday. The last traded price was 74.5 sen.

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