BASIC Energy Corporation (Basic Energy) signed a memorandum of agreement (MOA) with Vintage Engineering Public Company Limited (VTE) of Thailand on October 5 for a strategic partnership to pursue the exploration, development, and production of renewable energy resources in the Philippines and abroad.
The company told the Philippine Stock Exchange (PSE) on Thursday that under the MOA, Basic Energy and VTE shall, after due diligence, execute definitive agreements to cover VTE’s subscription of 9 percent of the outstanding capital stock of Basic Energy.
Moreover, under the MOA, VTE has the right to invest in the projects of Basic Energy, subject to any conditions precedent, and any terms and conditions which shall be further mutually agreed and determined in the future.
VTE’s equity investment covers 435,658,699 shares of Basic Energy from its unissued capital stock at a total subscription price of P139.4 million, divided into two tranches, with the first tranche payable on or before December 31, 2016 and the second tranche payable on or before March 31, 2017.
Basic Energy is a publicly listed company in the Philippines, with business interests in various fields of renewable energy and alternative fuels, and oil and gas exploration and development.
In a span of nearly 50 years since the company was established, Basic Energy has undergone a transformation from a holding company into an operating company. Among its projects in the pipeline, Geothermal Service Contract No. 8 in Mabini, Batangas is the most advanced, with the drilling of an exploratory well currently under way.
VTE, on the other hand, was originally in the mechanical and electrical business and eventually transformed into an engineering and engineering, procurement, and construction (EPC) contractor. It became a publicly listed company in 2008. In the short term, it has lined up various energy projects in Japan, Myanmar, Indonesia, and the Philippines.