By Danessa Rivera (The Philippine Star) | Updated October 28, 2017 - 12:00am
http://www.philstar.com/business/2017/10/28/1753105/basic-energy-pursues-ventures-3-countries
MANILA, Philippines — Basic Energy Corp. is participating in four renewable projects located in Japan, Myanmar and Thailand in line with plans to expand its portfolio here and abroad.
The company disclosed yesterday that it received the go signal from its board to acquire stakes in several developments overseas.
In Japan, Basic Energy was approved to take a 10 percent equity investment in the 14-megawatt (MW) solar project of Solmax Power Limited in Japan.
Basic had earlier made a refundable deposit of JPY 50 million, which allowed it to conduct due diligence on the project.
“The equity investment is subject to the satisfactory results of the full due diligence on the project, which is expected to be completed next month,” the firm said.
Basic was also cleared to acquire 10 percent — with the option to increase to 20 percent — in a 25-MW Biomass Power Plant Project in Japan, where Vintage Holdings Japan is a major shareholder.
The company board also green-lit its 49 percent equity investment in V.O. Net Biodiesel Asia Company Limited, which operates a 1.2-MW solar power plant located in Kalisin, Thailand.
The project firm is a wholly-owned unit of Vintage Engineering Public Company Limited (VTE), a publicly listed company headquartered in Thailand with a nine percent stake in Basic Energy.
Once it signs an Investment Term Sheet, Basic will remit refundable deposits to each project, giving it the exclusive right to negotiate the terms of its investments and begin the 60-day due diligence process.
Meanwhile, Basic Energy was also cleared to make a 12.5 percent investment in Vintage EPC Company Limited and Vintage International Construction Company, which are subsidiaries of VTE and the engineering, procurement and construction (EPC) contractors for the 220-MW solar power plant project in Minbu, Myanmar.
The company will make a refundable deposit to claim the exclusive right to negotiate and finalize the terms of the investment.
The shareholders agreement will be signed pending favorable results of the due diligence process on the VTE companies and the EPC contract.
“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 investments are seen to provide Basic Energy with revenue streams off projects with fast turnaround times,” the firm said.
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