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Business

Basic Energy completes acquisition of 15% of Thai EPC

Danessa Rivera - The Philippine Star

MANILA, Philippines — Listed Basic Energy Corp. has completed its acquisition of a 15 percent stake in a Thai engineering, procurement, and construction (EPC) contractor.

In a disclosure to the Philippine Stock Exchange yesterday, Basic Energy said it completed its acquisition of 2.52 million shares of VTE International Co. Ltd. (Thailand).

VTE International is one of the EPC contractors for the 220-megawatt (MW) solar power plant project located in Minbu, Magway Region, Myanmar.

The other contractor is Vintage EPC Co. Ltd. in which Basic Energy also has a 15 percent equity participation.

The solar project is owned by Green Earth Power, which also holds a power purchase agreement with the Myanmar government’s energy and power ministry.

The project is divided into four phases of 50 MW for Phases 1, 2 and 3 and 70 MW for Phase 4.

Phase 1 is expected to be completed by the first quarter, while the subsequent phases will be completed by 2022.

The equity investments in VTE International and Vintage EPC Co. are projected to provide Basic Energy with a steady source of revenue over the immediate term.

Moreover, these are in line with the company’s vision to be a major renewable energy and power company, with a robust portfolio of renewable energy projects.

Last June, Basic Energy signed a share purchase agreement with Meta Corp. Public Co. Ltd. of Thailand (formerly Vintage Engineering Public Co. Ltd.) to invest in its EPC subsidiaries.

A month after, Meta Corp. transferred 15,000 shares to Basic Energy.

Basic Energy continues to pursue its geothermal energy projects, while opportunities in other renewable energy projects, such as solar, wind and biomass energy, are currently undergoing due-diligence studies and work.

It has been scouting for solar power investments here and abroad to provide revenue stream, while developing geothermal prospects, which have  long gestation periods.

BASIC ENERGY CORP.

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