PETALING JAYA: Toyo Ventures Holdings Bhd
has proposed a selective capital reduction and repayment exercise that will see certain shareholders receive 28 sen per share in cash, as the group plans to subsequently delist from Bursa Malaysia.
In a filing with Bursa Malaysia, the company said the proposal, put forward by substantial shareholders Eng Lian (L) Inc and Bukit Asa Sdn Bhd, involves cancelling the shares held by entitled shareholders in exchange for cash, leaving non-entitled shareholders holding the entire equity interest in the company upon completion of the exercise.
According to the proposal letter dated Oct 19, the offer price of 28 sen per share represents a 16.67% premium over Toyo Ventures’ closing market price of 24 sen on Oct 16, the last full trading day before the proposal letter was served.
The offer price also represents premiums ranging from 13.82% to 22.32% against the five-day, one-month, three-month, six-month and one-year volume-weighted average market prices of the company’s shares.
Toyo Ventures said the capital reduction exercise is intended to be funded through a combination of internally generated funds from Toyo Ventures and its subsidiaries, financing facilities to be obtained by the group and/or advances from Eng Lian Enterprise Sdn Bhd, the ultimate offeror.
Toyo Ventures said it does not intend to maintain the listing status of the company.
The group said the exercise would allow it to refocus on its core businesses and pursue its long-term strategies amid a challenging operating environment, following the termination of its Song Hau 2 power plant project in Vietnam.
For the financial year ended March 31, 2026, Toyo Ventures recorded revenue of RM76.25mil and a pre-tax profit of RM4.19mil. The group had previously recorded a pre-tax loss of RM455.46mil for the 18-month financial period ended March 31, 2025, which included an impairment loss of about RM544.7mil following the termination of its Song Hau 2 power project.
The group said its future performance would depend primarily on the performance and growth of its existing core businesses, as well as any recovery of its investment in the Vietnam power plant project.
The proposal letter is open for acceptance by the board until 5pm on Nov 30, 2026.
Toyo Ventures closed unchanged at 24 sen a share.
