Basic Energy Corp. said it signed a memorandum of agreement with Vintage Engineering Public Co. Ltd. of Thailand to develop renewable energy projects in the Philippines and abroad.
Basic Energy said in a disclosure to the stock exchange Thursday the two parties would execute definitive agreements to cover VTE’s subscription of 9 percent of the outstanding capital stock of Basic Energy, after due diligence.
VTE also 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.”
Basic Energy said VTE’s 9-percent equity investment would cover 435,658,699 shares of the company from its unissued capital stock at a total subscription price of P139.41 million divided into two tranches.
The first tranche is payable on or before Dec. 31, 2016 and the second tranche on or before March 31, 2017.
Basic Energy said VTE, a company listed and registered under the laws of Thailand, could increase its holdings up to 25 percent, subject to mutually agreed conditions.
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.
Basic Energy has undergone a dramatic transformation from a holding company into an operating company.
Among its projects in the pipeline, Geothermal Service Contract No. 8 in Mabini, Batangas is 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 procurement and construction contractor. It became a publicly listed company in 2008.