Basic Energy Corp. has partnered with a Thailand-based company for the “exploration, development and production of renewable energy sources in the Philippines and abroad.”
The company said in a disclosure that it signed a memorandum of agreement (MOA) with Vintage Engineering Public Company Limited (VTE).
The equity investment amounts to P139.41 million covering 435, 658, 699 shares of Basic Energy’s unissued capital stock.
The first portion of the amount may be paid on or before December 31, 2016, while the second half is payable on or before March 31, 2017.
Under the deal, VTE will subscribe to nine percent of Basic Energy’s outstanding capital stock when it completes due diligence audits, and may raise its equity to 25 percent. VTE also has the right to invest in Basic Energy’s projects.
The Thai firm acts as an engineering, procurement and construction (EPC) contractor, and operations and management (O&M) operator. The company also operates a coal mine and raw materials supply business with projects pending in Indonesia, Japan, Myanmar and the Philippines.
Basic Energy has investments in renewable energy with five geothermal service contracts in the country, and recently partnered with solar developer nv vogt Singapore Pte. Ltd. for a potential solar project in one of their properties.
The company is also involved in oil and gas exploration and development. It has partnered with Trans-Asia Oil and Energy Development Corp. for the drilling of an exploratory well.