BASIC Energy Corp. said on Wednesday it is set to undertake due diligence on Solmax Power Ltd. of Hong Kong (Solmax) with the end-view of investing in the company and its solar projects in Japan.
In a disclosure to the Philippine Stock Exchange (PSE), Basic Energy said it has agreed to make a refundable earnest deposit to Solmax triggering exclusivity during the period of due diligence, which is expected to commence in the next few weeks and be completed within three to six months.
The company announced earlier that its Board of Directors has approved making an investment in Solmax, which marks the company’s foray into solar power development outside the country.
Vintage Engineering Public Company Ltd. (VTE), a Thai-listed firm, which had earlier made a major investment in Basic Energy, is already underway with its due diligence on Solmax’s portfolio of solar projects in Central Japan.
“Should due diligence results prove satisfactory, Basic Energy, which is targeting participation on projects in
Japan with a combined installation base of 15 megawatts, will proceed together with VTE in acquiring ownership stakes in Solmax,” the company said.
Details of the acquisition have yet to be finalized.
Basic Energy is a publicly listed holding company with business interests in various fields of renewable energy and alternative fuels, and oil and gas exploration and development.