KUALA LUMPUR (Jan 22): Toyo Ventures Holdings Bhd has entered into an investment and development agreement with its wholly-owned subsidiary Toyo Ink Group Bhd (TIGB) and also China Energy Engineering Investment Corporation Ltd (CEEIC) for the development of the Song Hau 2 Thermal Power Plant project in Vietnam.

In a filing with Bursa Malaysia today, Toyo Ventures said the agreement was aimed at providing a framework for a proposed divestment of the investment holding company’s equity interest in TIGB to the Chinese state-owned CEEIC.

“A substantive agreement will be finalised and executed within eight months from the date of the agreement,” it said, adding that the 2x1,060 megawatt coal-fired power plant is located in Hau Giang province.

In 2007, TIGB, which specialises in manufacturing printing inks and other materials, submitted a proposal to the government of Vietnam to undertake a power plant project in a suitable province in Vietnam.

The total investment of the project, as approved by the Vietnamese government, was estimated at US$3.243 billion.

The project was intended to be financed through a combination of equity funds and bank borrowings.