Basic Energy Corp. is set to sell its unissued shares to Vintage Engineering Public Co. Ltd (VTE) in Thailand for their joint development of renewable energy (RE) projects here and abroad.
In a disclosure to the Philippine Stock Exchange, Basic Energy said they inked a subscription agreement with VTE “for a strategic partnership to pursue the exploration, development, and production of renewable energy resources, in the Philippines and abroad.”
VTE will subscribe to aggregate 435,658,699 shares out of the unissued capital stock of the company.
The price would still be determined by the two companies, Basic Energy senior vice president and general manager Anthony Cuaycong said.
“The price is yet to be determined and will be finalized upon the signing of the subscription agreement. There will be two or three tranches,” he said.
Under the deal, VTE will also have the right to invest in the Mabini geothermal project and other projects.
“VTE is interested in the gamut of Basic’s projects. Likewise, Basic is in discussion with VTE regarding the latter’s own projects,” Cuaycong said.
It may also raise its interest in the company in the future, “both subject to terms and conditions which shall be mutually agreed upon by the parties in the future,” the company said.
VTE is a publicly listed company in Thailand operates as an engineering, procurement and construction contractor, and operations and management operator.
The Thai firm also owns a coal mine and a raw materials supply business that aims to become a significant energy player in Asia. It has energy projects lined up in Indonesia, Japan, Myanmar, and the Philippines.
Meanwhile, Basic Energy has five geothermal service contracts; Mabini Geothermal Service Contract (SC) in Batangas, East Mankayan Geothermal prospect in Ifugao, Mt Mariveles Geothermal project in Bataan, Mt Iriga Geothermal project on Albay, and West Bulusan Geothermal prospect in Sorsogon.