Basic Energy Corp. will invest P178 million (106 million Thai Baht) for a 15-percent stake in Vintage EPC Co. Ltd. (Thailand) and VTE International Construction Co. Ltd. in the next two months.
“The share purchase agreement is targeted to be executed within the month of April, 2018 and the shareholders agreement is targeted to be completed within the month of April or May, 2018,” Basic Energy disclosed to the Philippine Stock Exchange.
Basic Energy said it would acquire 7.5 million shares of Vintage EP for 10 Thai baht or a total of 75 million Thai baht.
The company will also purchase 3.118 million shares of VTE International for 10 Thai Baht for 31.185 million Thai baht.
Basic Energy last week announced would pursue a planned investment in the Thai firms.
“The equity investment is part of BEC’s plans to be a major renewable energy and power company. With this objective, BEC was tacked to develop a robust portfolio of renewable energy projects such as solar, wind and biomass energy projects in the Philippines and abroad, that will provide BEC with a continuing stream of revenues in the short and mid-terms,” the company said.
Basic Energy signed a term sheet with Vintage Engineering Public Co. Ltd. (Thailand) in November last year as owner of the two companies to initiate due diligence.
Basic Energy remitted $2.622 million as of December 2017 as earnest money deposit and with the completion of the due diligence work. With the recent approval of its board of directors, the company would now proceed with the execution covering the share purchase and the shareholders agreements.
The company said the execution of the agreements would be the basis for the conversion of Basic Energy’s earnest money deposit into equity in the companies.
Vintage EPC and VTE International are the suppliers and EPC contractors a 220-megawatt solar power project in Minbu District, Magway Region, Myanmar.
They were engaged by Green Earth Power (Myanmar) as the owner-developer of the project and holder of the power purchase agreement with Myanmar government’s energy and power ministry.
