News

Basic Energy expands in 3 Asian countries

By Myrna M. Velasco

Publicly listed firm Basic Energy Corporation has announced its participation in at least four renewable energy projects that are up for developments in Japan, Myanmar and Thailand.

The company said it will acquire shareholdings in affiliate-firms of Vintage Engineering Public Company Ltd. (VTE), which will then serve as its venture in the projects of the company in various jurisdictions.

For Solmax Power Limited, of which Vintage Holdings Japan is a wholly-owned subsidiary of VTE, the board of Basic Energy has approved its acquisition of 10 percent stake in a 14MW solar power installation in Japan.

The company reiterated its refundable deposit of 50 million Japanese yen, which allowed Basic Energy “to conduct a due diligence on the project.”

It added that the equity investment “is subject to satisfactory results of the full due diligence on the project, which is expected to be completed next month.”

The second venture of the company would be on VTE’s power plant project in Minbu, Myanmar for an installation of 220MW capacity.

“The board of Basic approved the 12.5 percent equity investment in the company. To claim exclusive rights to negotiate and finalize the terms of the investment,” the company stipulated.

Its other offshore investment foray would be a 10 percent equity investment in a 25MW biomass power plant project in Japan.

For this, Basic Energy “claims exclusive right to negotiate and finalize the terms of investment term sheet,” adding that “the covering shareholders’ agreement will then be signed upon favorable results of the due diligence process on the VTE companies and the EPC contract.”

Another would be 49 percent equity investment in a biodiesel project in Kalisin, Thailand through a tie-up with V.O. Net Biodiesel Asia Company Limited.