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By Euan Paulo C. Añonuevo, Reporter
THE Philippine unit of Hong Kong-listed First
Pacific Co. Ltd. will team up with Basic Energy Corp. for a number
of alternative fuel projects.
On the sidelines of the awarding of the
company’s geothermal exploration pro-ject, Oscar de Venecia Jr.,
Basic president, said his company’s team up with Metro Pacific
Investments Corp. (MPIC) is a “good marriage” between reputable
firms.
Formerly Basic Petroleum Corp., the company is
engaged in oil and gas exploration as well as the development and
production of biofuels and other alternative and renewable energy
resources.
MPIC is the local holding company of First
Pacific and has interests in telecommunications, property,
utilities, health care, among others.
In a disclosure to the Philippine Stock
Exchange, Basic said its board has given the green light to signing
a memorandum of understanding with MPIC for the study of a possible
joint-venture deal.
Both parties are looking to pair up on “the
production of ethanol and other related alternative fuels, after a
due diligence by MPIC on the planned ethanol projects of [Basic],”
the disclosure read.
Besides the agreement with MPIC, Basic’s board
likewise decided to lower the volume and offer price for its
proposed follow-on share sale. From 5.5 billion shares, Basic cut
the offering to between 1.5 billion and 3 billion shares. It also
trimmed the offer price from P0.38 per share to P0.25.
Proceeds from the offering is expected to fetch
Basic about P350 million to P750 million, which will be used to fund
the construction of two ethanol plants and the exploration within
the company’s recently awarded geothermal service contract in
Mabini, Batangas.
Basic’s shares closed lower Thursday at P0.185
from P0.195 previously.
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