BASIC Energy Corp. said on Monday that its board of directors had given the go signal to acquire up to a 60% ownership in local oil company Filoil Energy Co., Inc. through an equity investment.

“After further presentation… the members of the Board of Directors resolved to approve the proposed equity investment in Filoil Energy and acquire interest therein of up to 60%,” the listed holdings firm said in a regulatory filing.

The company said eight of its directors voted in favor of the planned investment, with two officials abstaining since they have direct and indirect interests in Filoil Energy.

The move to invest in the oil firm earlier received the green light from the firm’s risk and related party transactions committees.

BusinessWorld has reached out to Basic Energy for more details on the planned investment, but the firm has yet to reply as of deadline time.

Last month, the corporate regulator approved the doubling of Basic Energy’s authorized capital stock to P5 billion from P2.5 billion previously. The firm asked for a higher capital stock “to raise funds for energy projects and expand its existing business operations.”

In May, the de Venecia-led company secured from the Energy department a service contract for a planned 50-megawatt wind project in Mabini, Batangas.

The wind energy service contract calls for a non-extendible, five-year, pre-development phase and a 25-year development stage, counted from contract signing.

Basic Energy also holds service contracts for the exploration and development of geothermal energy in Batangas, Bataan, Benguet, Camarines Sur, and Sorsogon.

Basic Energy shares at the local bourse improved 5.26% or three centavos to finish at P0.60 apiece on Monday. — Angelica Y. Yang

Source: https://www.bworldonline.com/basic-energy-plans-to-acquire-60-ownership-in-filoil/