Basic Energy Corp. (BEC) will spend around P180 million for its 15 percent equity investments in Thai engineering, procurement, and constructions (EPC) contractors that will bring steady revenue stream for the company.
In a disclosure, the company said that it’s looking to have a share purchase agreement (SPA) with the Vintage EPC Co. Ltd. and a shareholders’ agreement with VTE International Construction Co. Ltd. within the next two months.
Under the agreement, BEC will acquire 7.5 million shares in Vintage EPC through a share purchase from parent firm: Vintage Engineering Public Co. Ltd (VTE) of Thailand for a consideration of 75 million Thai Baht or P125.93 million.
BEC will also purchase 3.12 million shares from the share issuance of the VTE International worth P52.36 million.
The total investment is worth P178.3 million.
The company said that the two Thai EPC contractors will enhance its project portfolio as a renewable energy and power company.
“The investment is expected to provide a continuing stream of revenues in the short and midterms for the company,” BEC said.
BEC’s entry into the EPC firms will increase the working capital of the companies needed to pursue the requirements of their respective contracts related to the solar power plant being constructed.
The two companies are the primary EPC contractors of a 220 – megawatt (MW) solar power plant in Minbu District in Magway region, Myanmar.
BEC has been on the search for solar power investments both local and international in order to provide revenue stream while developing geothermal prospects.