De Venecia-led Basic Energy Corp. is targeting to seal a deal by April to invest in two Thai firms that clinched the contract for a 220-megawatt (MW) solar power plant project in Myanmar.
Basic Energy said on Tuesday the share purchase agreement was targeted to be signed within next month and the shareholders’ agreement in April or May, to acquire up to 15 percent of the total capital of Vintage EPC Co. Ltd (VEPC) and VTE International Construction Co. Ltd. (VINTER).
The listed firm will acquire 7.5 million shares of VEPC for 10 Thai baht (P16.78) apiece via sale and transfer from shares owned by Vintage Engineering Public Co. Ltd (VTE).
It will also purchase 3.10 million shares of VTE International Construction for 10 baht (P16.78) per piece, initially via sale and transfer of some shares held by VTE and subsequently through capital increase to be done by VINTER.
The total amount of investment is 106.19 million baht (P178.33 million).
Full payment will be made upon signing of the two accords. To close the transaction, the boards of VEPC and VINTER have to approve the deal.
Regulatory requirements will be the disclosure statements on the closing of the equity investment, it added.
Basic Energy informed the local bourse on Friday its board had confirmed investing in the two companies that bagged the engineering, procurement, and construction contract for the solar facility, located in the Magway Region.
Last November, it signed a term sheet with VTE, depositing $2.622 million (P137.3 million) for the completion of a 60-day due diligence.
The deposit served as partial payment of the shares and will be converted to paid-in capital upon the signing of both agreements.
Payment of the balance is still being negotiated and the agreed due date will be outlined in the share purchase agreement.
VEPC and VINTER are subsidiaries of VTE, which currently owns 99.99 percent of the two entities. They were commissioned by Myanmar’s Green Earth Power as the owner-developer of the project and the holder of the power purchase agreement with Myanmar’s government.
VEPC is the supplier of materials and equipment for the construction of a 220MW solar power project located in Minbu District, while VINTER handles the construction services required to build and complete the solar project.
The development of the facility, which started in 2016, was planned to be completed in four phases: 50MW for phases 1, 2, and 3 and 70MW for phase 1.
Phase 1 is targeted to be finished by the end of this year. Full completion of the entire solar project is expected on or before 2021.
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