Basic Energy investing in 2 Thai firms
Basic Energy Corp. has agreed with Thailand-based Vintage Engineering PCL (VTE) on the terms of investing in two of the latter’s subsidiaries involved in what is considered as Southeast Asia’s largest solar power project.
Basic Energy said in a disclosure to the Philippine Stock Exchange that it had signed with VTE an investment term sheet, which covered its nonbinding intention to invest in Vintage EPC Co. Ltd. and Vintage International Construction Co. (Vinter).
Under the plan, Basic Energy will take up a 12.5-percent equity in both firms.
Both Vintage EPC and Vinter are in partnership with GEP (Myanmar) Co. Ltd.—also a Thai firm—on the engineering, procurement and construction of a 220-megawatt solar plant at the Minbu District of Myanmar’s Magway Region.
Tagged at $270 million, the Minbu project is expected to help boost Myanmar closer toward the government’s goal to increase electricity production from 2,500 MW as of 2015 to 30,000 MW by 2030.
According to Basic Energy, development and construction of Phase I of the Minbu project, which is expected to generate 50 MW, are on-going.
The company said it also had an option to raise its equity in Vintage EPC and Vinter to 20 percent. The terms of the agreement also provides that Basic Energy complete due diligence work within 60 days, which may be extended on mutual agreement of the parties involved.
In October, Basic Energy announced it was acquiring interest in four renewable energy projects abroad, with an aggregate power generating capacity of 260 megawatts, including the Minbu project.
Aside from the Myanmar project, two others are located in Japan and a fourth one in Thailand.
The company behind all four projects is mainly 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 the disclosure.
“The investments are seen to provide Basic Energy with revenue streams off projects with fast turnaround times,” the company said.
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