Basic Energy Corp. is looking to get minimum stakes in firms that are currently building a solar power plant in Myanmar as part of getting revenue streams as development for long-gestating projects occur.
In a disclosure, Basic Energy said that it signed an investment term sheet with Thailand’s Engineering Public Company Limited (VTE) to invest in its subsidiaries that won the supply and construction service contracts for the engineering, procurement, and construction (EPC) of a 220-megawatt (MW) solar farm.
The said term sheet gives Basic Energy an exclusive right to negotiate and finalize the terms of the investment.
The company is eyeing to acquire a minimun 12.5 percent stake in Vintage EPC Co. Ltd and in Vintage International Construction Co. Ltd.
“A refundable deposit will be made to begin the due diligence process on the two VTE companies, namely,
Vintage EPC and Vintage International Construction,” the firm said.
Basic Energy is set to complete the due diligence process within 60 days. Should teh results be favorable, the firm will sign the shareholders’ agreement with VTE, with the option to increase its investment up to 20 percent in both VTE companies.
“Basic Energy’s participation in the aforementioned projects is in line with its thrust to expand its portfolio of renewable energy projects in the Philippines and abroad. The investments are seen to provide Basic Energy with revenue streams off projects with fast turnaround times,” it said.
The company has been looking for solar power investments outside of the country, particularly in Asia, following the fast turn around time compared with geothermal projects.
Basic Energy currently has five geothermal service contracts; the Mabini Geothermal Service Contract (SC) in Batangas, East Mankayan Geothermal Prospect in Ifugao, Mt. Mariveles Geothermal Project in Bataan, Mt. Iriga Geothermal Project in Albay and West Bulusan Geothermal Prospect in Sorsogon.