Listed Basic Energy Corp. said Monday it signed an agreement with MAP 2000 Development Corp. to acquire at least 67 percent of the outstanding capital stock of the company.
Basic Energy said the acquisition would be subject to compliance by the company with the conditions precedent and other representations, warranties and undertakings as stipulated in the agreement.
“The shares to be acquired by M2DC will be 9,827,990,853 primary shares to be subscribed and issued out of the increase in the authorized capital stock of the company from P2.5 Billion to P5 Billion, upon approval thereof by Securities and Exchange Commission,” Basic Energy said.
M2DC is a company engaged in real estate acquisition, development and management and in investing in real properties and acquiring shares of stocks of viable corporations to exercise rights of a shareholder.
It said the capital increase was approved by the company’s stockholders at the annual stockholders’ meeting held last Oct. 23.
Basic Energy was originally incorporated as Basic Enterprises Inc. on Sept. 19, 1968 and became an oil and gas exploration and development company on April 26, 1971.
It assumed a new name, Basic Petroleum and Minerals Inc. in 1972. Over the years, the company evolved from an operating company to a holding company under the corporate name, Basic Consolidated Inc.
In 2007, in line with the inclusion among its primary purposes the production of ethanol and other biofuels and the development of other alternative and renewable energy sources, the company changed its corporate name to Basic Energy.
As a holding company, Basic Energy fully owns the following subsidiaries: Basic Diversified Industrial Holdings Inc., an investment holding company; iBasic Inc., an information technology management company and service integrator; Basic Biofuels Corp., a biofuel developer; Basic Renewables, which is a renewable energy firm; Basic Geothermal Energy Corp., engaged on geothermal energy development; and Grandway Group Ltd., a Hong Kong based unit in charge of equity investments abroad.
The company also owns 72.58 percent of Southwest Resources Inc., an oil exploration company.
Basic Energy was awarded by the Department of Energy five service contracts for the exploration and development of geothermal energy in Mabini, Batangas; Mariveles, Bataan; East Mankayan, Benguet; Iriga, Camarines Sur; and West Bulusan, Sorsogon.
The company was also previously awarded by the DOE four hydro-power service contracts in Negros Occidental, but Basic Energy withdrew from these service contracts to focus on drilling operations in Mabini, Batangas.
The service contract was terminated by the DOE in a letter dated June 14, 2019.