Listed Basic Energy Corp. is investing in renewable energy projects in Japan, Myanmar and Thailand to expand its overseas energy portfolio.
Basic Energy said Friday its board approved the purchase of a minority interest in Hong Kong-based Solmax Power Ltd., where Vintage Holdings Japan, a wholly-owned unit of Vintage Engineering Public Co. Ltd., holds the right to take a majority position.
“The board of Basic Energy approved the 10 percent equity investment in the 14-MW solar power plant located in Japan,” the company said in a disclosure to the Philippine Stock Exchange.
Basic Energy earlier made a refundable deposit of 50 million yen that allowed it to conduct a due diligence on the project.
The equity investment is subject to the satisfactory results of the full due diligence on the project, which is expected to be completed next month.
The board of Basic Energy also approved a 12.5-percent equity investment in Vintage EPC Co. Ltd. and Vintage International Construction Co., wholly owned by Vintage Engineering Public Co. Ltd or VTE.
VTE has bagged the contract to build a 220-megawatt solar power plant in Minbu, Myanmar.
Basic Energy is set to infuse a non-refundable deposit after the signing of the investment term sheet.
The company’s board also approved a 10-percent investment in a 25-MW biomass power plant in Japan where Vintage Holdings Japan is a major shareholder in the investing company.
Basic Energy acquired a 49 percent stake in V.O. Net Biodiesel Asia Co. Ltd., wholly owned by VTE and which currently operates a 1.2-MW solar power plant in Kalisin, Thailand.
The local company is set to make a refundable deposit upon signing of the term sheet that gives Basic Energy the exclusive right to negotiate the terms of the investment and begin the 60-day due diligence process,.
“Basic Energy’s participation in the aforementioned projects is in line with its thrust to expand its portfolio of renewable energy projects in the Philippines and abroad,” the company said.
The investments are seen to provide Basic Energy with revenue stream of projects with fast turnaround times.
Basic Energy announced last year it was looking for joint venture opportunities in solar and geothermal power projects in the pipeline.
Basic Energy president Oscar De Venecia Jr. earlier said the company wanted to develop renewable energy projects that could bring important short-term revenue to the company.