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Basic Energy Corp. will conduct a stock rights
offering to raise additional funds, the company announced Monday.
The energy development company
disclosed to the Philippine Stock Exchange it would offer up to 500
million shares at one share for every two shares held at the same
par value price of P0.25 per share.
The stock rights offering will be
held as soon as the company gets the go-signal from the Securities
and Exchange Commission to increase its authorized capital stock to
10 billion shares amounting P2.5 billion from 2 billion shares
amounting P500 million.
Basic Energy has engaged the BDO
Capital and Investment Corp. as the financial advisor for the
fund-rising exercise.
To comply with the minimum
subscribed and paid-up shares required by the government regulator,
the board will set private placement terms with existing
stockholders and prospective strategic investors for about 2 billion
shares at par value of P0.25 per share.
Meanwhile, Basic Energy said it
has pushed back its follow-on offering to early next year at a
subscription price “to be determined at the appropriate time” by
the board of directors based on prevailing market prices.
The follow-on offering aims to
raise about P2 billion, or 40 percent of its capital expenditures to
fund the firm’s exploration and energy resources development
projects, which include geothermal energy, wind and other
alternative and renewable energy and mining projects.
The company will raise the
remaining 60 percent of its capex through borrowing.
Basic recently bought Zambo Norte
BioEnergy Corp., which will build an ethanol plant in Zamboanga del
Norte that will produce 200,000 liters of ethanol a day by end 2009.
The company hopes to bag the
right to explore a geothermal site in Mabini, Batangas, which could
feed a 200-megawatt power plant. The company has earmarked P500
million for this venture.
--Likha C. Cuevas-Miel
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