Real estate firm acquires 67% of Basic Energy
Real estate company MAP 2000 Development Corp. (M2DC) has signed an agreement to acquire 67 percent of Basic Energy Corp. (BSP).
BSC said in a disclosure to the Philippine Stock Exchange that the agreement allows M2DC to acquire about 9.8 billion of the holding firm’s primary shares.
Such shares shall be, pending approval of the Securities and Exchange Commission, issued out of the increase in the authorized capital stock of BSC from P2.5 billion to P5 billion that stockholders approved during their annual meeting held last Oct.23. This will dilute the shares of the current shareholders.
Registered in the Philippines, M2DC is engaged in real estate acquisition, development and management.
M2DC also invests in real properties and acquires shares of stocks of viable corporations to exercise rights of a shareholder.
BSC subsidiaries, meanwhile, are engaged in information technology management and service integration, biofuels, geothermal energy, equity investments and oil exploration.
BSC holds five service contracts with the Department of Energy, which are all related to the exploration and development of geothermal power in provinces of Batangas, Bataan, Benguet, Camarines Sur and Sorsogon.
In the quarter ended Sept. 30, BSC sustained a net loss of about P44 million, which brought their January-September bottom line to a net loss of about P66.1 million.
In 2019, BSC’s losses ballooned to P197.8 million from the P15.8 million sustained in 2018. INQ
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