New Toyo

[Underdogger]

A point to keep in mind is that New Toyo being one of the dominant shareholders of SAH (34%) did not object to the asset sales in the first instance, even though it was pretty clear that in the opinions of many, the sales might not have been conducted in the best interests of shareholders. (IPO at 28 cents, NAV now only 19.6 cents). Perplexingly, SAH has continued to expand its aluminium rolling capacities just before the asset sales was announced in Oct 2010.

It is with all these backgrounds in mind that one should objectively evaluate New Toyo and SAH.

"SIN" business as New Toyo may be in, New Toyo has stated in its

AR 2009 as follows:
" While the tobacco industry is expected to go through more stringent regulatory controls, we expect that packaging will play a big part and we foresee more opportunities in this respect. The management will be proactive and ensure that opportunities are seized".

AR 2010:
"Our Core businesses are expected to continue to generate shareholder value. If the transaction announced by our associated company, SAH, on 25 Oct 2010 regarding the sale of its entire business and assets does proceed, this would regard in a significant cash payout to the company"

AR 2011:
"Looking ahead 2012, the economic conditions appear uncertain but the business sentiments in our industries and markets are still positive. We will continue to work with our key customers for sustainability and pursue new opportunities whenever possible for growth. Depending on the final cash proceeds available to the company from the sale of its business from our associated company, SAH, we will also review our strategic position."