Published
By Madelaine B. Miraflor
Listed Basic Energy
Corporation has signed a term sheet with Vintage Engineering Public Company
Limited (VTE) of Thailand for the possible acquisition of a minimum 12.5
percent stake in two companies that hold the Engineering, Procurement, and
Construction (EPC) contract of the ongoing 220-megawatt (MW) solar power plant
project in Minbu, Myanmar.
The term sheet grants
Basic Energy the exclusive right to negotiate and finalize the terms of the
investment in Vintage EPC (VEPC) and Vintage International Construction Co. Ltd
(VINTER), the company said in a disclosure to the Philippine Stock Exchange.
As of now, the
development and construction of the first of four phases of the solar plant,
which is expected to initially generate 50 MW, is ongoing.
While the companies are
at it, a refundable deposit will be made to begin the due diligence process on
the two VTE companies.
Under provisions of the
term sheet, Basic Energy will strive to complete the due diligence process in
60 days, but may ask for an extension subject to VTE’s consent.
The covering
shareholders agreement will then be signed upon favorable results of the due
diligence process on the VTE companies and the EPC contract, during which time
Basic Energy can opt to increase its planned investment to up to 20 percent.
“Basic Energy’s
participation in the aforementioned projects is in line with its thrust to
expand its portfolio of renewable energy projects in the Philippines and
abroad,” the company told the local bourse.
“The investments are
seen to provide Basic Energy with revenue streams off projects with fast
turnaround times,” it added.
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