LISTED Basic Energy Corp. said on Friday that it had signed a term sheet with Vintage Engineering Public Co. Ltd (VTE), a firm listed on Thailand’s stock exchange, for the possible acquisition of a minimum 12.5 percent stake in two companies that won the contract to build a 220-megawatt (MW) solar power plant project in Minbu district, Myanmar.
The target companies for investment are Vintage EPC Co. Ltd. and Vintage International Construction Co., which bagged the engineering, procurement, and construction (EPC) contract for the Myanmar solar power project.
“Development and construction of the first of four phases of the power plant, which is expected to generate 50 MW, are ongoing,” the listed firm said in a disclosure to the local bourse on Friday.
Basic Energy said the term sheet grants it the exclusive right to negotiate and finalize the terms of the investment.
A refundable deposit will be made to begin the due diligence (DD) process on the two VTE entities, it said.
“Basic Energy will strive to complete the DD 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 DD 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,” the company said.
“The investments are seen to provide Basic Energy with revenue streams off projects with fast turnaround times,” it said.
Last month, the company announced it was acquiring stakes in four RE undertakings outside the Philippines. Two of the projects are located in Japan, while the other one is in Thailand.
Basic Energy, which holds a 70 percent stake in Hong Kong-based electronic manufacturer Grandway Group Ltd., is a holding company with interests in different fields of RE and alternative fuels, and oil and gas exploration and development.