Basic Energy Corporation’s board has approved the company’s plan to buy up to 60% of independent oil firm Filoil Energy Co. Inc.
In a disclosure to the Philippine Stock Exchange (PSE) on Monday, Basic Energy said eight of ten directors approved the motion, while two abstained upon declaring their direct and indirect interests in Filoil.
Prior to this, the matter was reviewed by the board’s risk and related party transaction (RPT) committees. Both committees have former Bureau of Internal Revenue (BIR) Commissioner Kim Henares as chairperson with retired Supreme Court Justice Andres Reyes, Jr. and former Pilipinas Shell executive Reynaldo Gamboa as among their members.
Henares, Reyes, and Gamboa are independent directors of Basic Energy. The former BIR chief joined the company in April, while the former Shell executive did so in May.
Last month, the Securities and Exchange Commission (SEC) approved the doubling of Basic Energy’s capitalization to Php5 billion from P2.5 billion previously.
“The increase in the authorized capital stock is to provide sufficient shares of stock for subscription by potential strategic investor/s in the Company and to provide flexibility to the Company in the issuance of additional shares in the future to raise capital to fund new projects and any possible expansion plans without having to secure SEC approval again for an additional increase in capital stock,” Basic Energy said in its disclosure to the PSE on September 29.
Basic Energy was the stock market’s second biggest gainer on Tuesday, closing at Php0.73 per share, up 21.67% or Php0.13 from its closing price of Php0.60/share on Monday.