Philippine-listed energy developer Basic Energy Corp announced that it will acquire 15 per cent stake in Thai engineering and construction firms Vintage EPC Co Ltd (VEPC) and VTE International Construction Co Ltd (VINTER) in the next two months.
In a disclosure to the Philippine Stock Exchange, Basic Energy said, it will purchase 7.5 million shares of VEPC for THB75 million ($2.4 million) and 3.118 million shares in VINTER for THB31.185 million (about $1 million).
VEPC is the supplier of the materials and equipment for the construction of the 220-megawatt solar power project located at Minbu District, Magway Region Myanmar, while VINTER handles the construction services required to build and complete the said power plant.
Basic Energy previously disclosed that it had set keen interest in a tie-up with the affiliated Thai firms because of their renewable energy ventures in the region, including a major project in Myanmar.
The investment of Basic Energy in the two companies will increase their working capital needed to pursue the requirements of their respective contracts relative to the construction of the solar power plant in Myanmar.
Basic Energy said, the equity investment is part of its plans to be a major renewable energy and power company.
“With this objective, Basic Energy 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 the company with a continuing stream of revenues in the short and mid-terms,” the company said.
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.
In 2017, Basic Energy signed a term sheet with the Vintage Engineering Public Company Limited (VTE) of Thailand, as the owner of VEPC and VINTER, to begin the necessary due diligence on the said companies.
The Philippine Stock Exchange (PSE) reported that capital raised at the bourse was at a record high of P150.01 billion in the first half of 2018. The amount raised in the first six months was 40.5 percent higher than the P106.74 billion recorded in the same period last year. The capital raising activities from January…read more
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