Basic Energy buying RE stake in 3 Asian countries

Basic Energy Corp. announced on Friday it was acquiring interest in four renewable energy projects abroad, including one touted as Southeast Asia’s largest solar power project.

Of the four projects, two are located in Japan, one in Thailand and another in Myanmar. Basic Energy’s shopping binge covers an aggregate power generating capacity of 260 megawatts.

The company behind all four projects is mainly Vintage Engineering PCL (VTE), which is listed on the Stock Exchange of Thailand.

“Basic Energy’s participation in the aforementioned projects is in line with its thrust to expand its portfolio of renewable energy projects in the Philippines and abroad,” the company said in a disclosure to the Philippine Stock Exchange.

“The investments are seen to provide Basic Energy with revenue streams off projects with fast turnaround times,” the company added.

Basic Energy is doing due diligence on two wholly owned VTE subsidiaries—Vintage EPC Co. Ltd. and Vintage International Construction Co.—as well as their engineering, procurement and construction contract on the 220-MW solar power plant project in Minbu, Myanmar.

With a price tag of $270 million, the Minbu project is expected to help boost Myanmar closer toward the government’s goal to increase electricity production to 30,000 MW by 2030 from 2,500 MW as of 2015.

Basic Energy said its board has approved an equity investment of 12.5 percent in the VTE companies, which would eventually depend on favorable results of the due diligence process.

Basic Energy also said it expected to wrap up due diligence on a 14-MW solar power plant in Japan. For this, the company planned to secure a 10-percent equity in the Hong Kong-based project proponent Solmax Power Ltd.

VTE’s unit, Vintage Holdings Japan (VHJ), has the right to hold a majority position in Solmax.

Basic Energy has made a refundable deposit of 50 million yen or about P23 million, enabling the company to go through the due diligence scheduled until November.

Further, Basic Energy is also looking at a 10-percent equity investment in a 25-MW biomass power plant project in Japan, where VHJ is a major shareholder.

Basic Energy has made a deposit to secure an exclusive right to negotiate the terms of the investment, and has been granted the option to increase its stake to 20 percent.

Finally, Basic Energy is eyeing a 49-percent equity investment in VTE subsidiary VO Net Biodiesel Asia Co. Limited, which operates a 1.2-MW solar power plant located in Kalisin, Thailand.