By Myrna M. Velasco – March 25, 2018, 10:00 PM
from Manila Bulletin
The De Venecia-led Basic Energy Corporation has indicated that it will push ahead with its planned 15 percent share purchase in Thai firm Vintage EPC Company Limited and affiliate VTE International Construction Company Limited.
The listed firm has noted in its disclosure to the Philippine Stock Exchange (PSE) that “the purchase of the shares is still subject to the approval of the board of directors of said companies.”
It emphasized that “the equity investment is part of Basic Energy’s plans to be a major renewable energy and power company.”
On a broader scale, Basic Energy touted that it has its eyes set on developing “a robust portfolio of renewable energy projects, such as solar, wind and biomass energy projects in the Philippines and abroad,” that in turn shall be providing it “with a continuing stream of revenues in the short- and mid-terms.”
The De Venecia firm added that the closing of the transaction “shall be scheduled upon compliance with certain conditions precedent which may be required by the parties and mutual agreement on the terms and conditions of the covering Share Purchase Agreement and the Shareholders Agreement.”
Basic Energy previously apprised media that it had set keen interest on a tie-up with the affiliated Thai firms because of their renewable energy ventures in the region, including a major project in Myanmar.
It was in November last year when Basic Energy inked a term sheet with Vintage Engineering Public Company Limited, which then warranted the start of due diligence process on the targeted equity acquisition.
By December 31, 2017, Basic Energy had remitted the amount of $2.622 million as its “earnest money deposit” – to which in the deal it had with the Thai firms, such shall “be converted to paid-in capital of Basic Energy in the said companies, upon execution of the Share Purchase Agreement and Shareholders’ Agreement.”
For the Myanmar project, Basic Energy noted that the Thai firms had been tapped as engineering, procurement and construction (EPC) contractors for a 220-megawatt solar farm installation at the Minbu district in Magway, region.
The owner-developer of that venture is Myanmar’s Green Earth Power, wherein the project’s capacity had been covered by a power purchase agreement underwritten by Myanmar’s energy and power ministry.
The solar farm development is of four phases – with 50MW capacity each for phases 1, 2 and 3; while phase 4 will be of bigger capacity installation of 70MW.
Project design and construction commenced in 2016, and according to Basic Energy, the solar facility’s phase one is due for completion and commercial commissioning by the end of this year.
“The subsequent phases shall be pursued after completion of the previous phases, to achieve full completion of the four phases on or before 2021,” the PSE-listed firm said.