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New Toyo's Tien Wah Press seeks shareholder nod to diversify into property development
TIEN Wah Press Holdings, the Malaysia-listed subsidiary of Singapore-listed New Toyo International Holdings, is seeking shareholder approval to diversify into property development from its core business of printing and trading.
This comes after Tien Wah tied up with construction company Lum Chang Holdings through a joint venture last year to undertake a mixed-use development in Malaysia.
In an exchange filing on Tuesday, Tien Wah said it is seeking shareholder approval to offer financial assistance of up to RM250 million (S$84.7 million) to this joint venture company, by subscribing to shares or providing guarantees/loan collateral.
The funds will go towards the proposed development - the cost of which will not exceed RM500 million.
Tien Wah also said that it intends to continue with its existing core business, save for its 50 per cent stake in the joint venture.
But the joint venture is expected to make up more than a quarter of the company's net assets or contribute more than a quarter of net profits in future - given Tien Wah's intention to provide financial assistance to the joint venture company.
This means it needs to seek shareholder approval for the diversification at an extraordinary general meeting.
New Toyo International owns a 54 per cent stake in Tien Wah Press Holdings.