Wednesday, December 13, 2017

Basic Energy, VHJ ink deal on biomass power project



Philippine Daily Inquirer / 05:10 AM December 09, 2017

Basic Energy Corp. yesterday said it had signed an agreement with Vintage Holding Japan Co. Ltd (VHJ) on the possible acquisition of at least 10 percent stake in a 25-megawatt biomass power plant project in Japan.
This firms up an undertaking that was announced last October, in which Basic Energy had expressed interest to acquire interest in four projects associated with Thailand-based Vintage Engineering PCL (VTE)—including this biomass facility in Karatsu City, Saga Prefecture.
VHJ, a unit of VTE, holds full executive rights to the facility, which is wholly owned and controlled by Biomass Power GK or IBP.
Basic Energy said the investment term sheet granted it the exclusive right to negotiate and finalize the terms of the investment in VHJ’s project.
Also, Basic Energy has 60 days to complete the due diligence process, which may be extended if IBP consents.
If results are favorable, the two parties expect to sign a shareholders agreement by June 30, 2018.
If this happens, Basic Energy expects to have the option to increase its planned investment in the biomass facility up to 20 percent.
This announcement follows one about Basic Energy signing a similar term sheet with VTE, related to a possible 12.5-percent equity in two of the latter’s subsidiaries.
These subsidiaries are involved in what is considered Southeast Asia’s largest solar power project—the $270-million, 220-megawatt Minbu solar power plant at the Minbu District of Myanmar’s Magway Region.
The Minbu project is seen bringing Myanmar closer to the government’s goal to increase electricity output from 2,500 MW as of 2015 to 30,000 MW by 2030. —RON W. DOMINGO

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