Monday, December 12, 2011

Toyo Ink extends losses, more details of US$2.5b power plant needed

KUALA LUMPUR (Dec 12): Shares of TOYO INK GROUP BHD [] fell to RM1.60 on Monday, extending its losses from last Friday as investors turned cautious about the return on investment from the US$2.5b coal-fired thermo power plant power plant in Vietnam.

At 3.04pm, it was down seven sen to RM1.60, off the day's high of RM1.80. There were 28,000 shares done.

However, the 30-stock FBM KLCI was up 10.69 points to 1,470.82. There were 1.05 billion shares done valued at RM601.71 million. There were 350 gainers, 288 losers and 298 stocks unchanged.

Last Friday, Toyo Ink said it planned to finance the US$2.5b coal-fired thermo power plant power plant in Vietnam from a corporate exercise and also through borrowings.

Since the project involved a massive capital outlay, the company said it would consider raising certain portion of the project capital via corporate exercise and then funding the balance through borrowings.
Toyo Ink said it would also seek equity partnerships to incorporate a joint venture company in Vietnam.

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