ENERGIZING A GREENER FUTURE

BASIC ENERGY Corp. and a Thai company have agreed to a “strategic partnership” in renewable energy projects, the listed company said on Wednesday.

In a disclosure to the exchange, Basic Energy said it had agreed to issue and Vintage Engineering Public Co. Ltd. (VTE) has agreed to subscribe for 435,658,699 shares of the company.

It said with the deal, the partners will “pursue the exploration, development and production of renewable energy resources, in the Philippines and abroad.”

Shares in Basic Energy jumped by 4.62% on Wednesday to close at P0.31 each.

Basic Energy described VTE as “developing some energy projects in Japan, Myanmar, Indonesia and the Philippines.” It said the partner was originally in the construction and engineering business.

The Basic Energy shares that VTE will subscribe for will come from the company’s unissued capital stock. The subscription will be in tranches, subject to the terms and conditions agreed by the business partners.

“The above transactions are subject to compliance of the conditions precedent, representations and warranties and covenants” stipulated in the agreement at closing date, which is set for Feb. 17, 2017 or on a “long stop date,” which is set for the end of 12 months from signing of the agreement, as the case may be.

Basic Energy said VTE has the right to invest in its Mabini geothermal project and other company projects. The publicly listed Thai company may also increase its holdings of Basic Energy shares in the future.

Both moves are “subject to terms and conditions which shall be mutually agreed upon by the parties in the future,” Basic Energy said.

Basic Energy earlier this month said that the partners have once again amended their agreement on when the acquisition of shares would take place.

Basic Energy said the two had signed in Bangkok a second amendment to the memorandum of agreement, which was executed by the parties on Oct. 5, 2016.

In December, the two signed an amendment that moved the “long stop date” to Jan. 31, 2017 from Dec. 31, 2016 for the parties to execute the subscription agreement.

Source: http://www.bworldonline.com/content.php?section=Economy&title=thailand&8217s-vte-to-take-stake-in-basic-energy-amid-renewables-tie-up&id=140742