28 June 2018
BASIC ENERGY Corp. on Wednesday said it has signed the share purchase agreements to acquire a 15% stake in two Thai companies, which are building a solar power project in Myanmar.
“We signed [for] the entry of Basic [Energy] into two EPC (engineering, procurement and construction) companies that are based in Thailand. They’re doing the EPC contract for the 220-megawatt (MW) solar project in Myanmar,” Basic Energy President and Chief Executive Oscar L. de Venecia, Jr. told reporters after the company’s annual stockholders meeting on Wednesday.
Basic Energy signed the deal with Meta Corp. Public Co. Ltd. (Thailand) covering the purchase of shares in Vintage EPC Co. Ltd. (Thailand), or VEPC, and VTE International Construction Co. Ltd. (Thailand), or Vinter.
Mr. De Venecia clarified his company’s participation is as stakeholder in the EPC companies and not the solar project.
In a disclosure on Wednesday, Basic Energy said that as of Dec. 31, 2017, the company had remitted around $2.622 million as earnest money deposit, which will be converted into its paid-in capital contribution into the VEPC and Vinter on the closing dates stipulated in the share purchase agreements.
Under the shareholders agreement, the company will be represented by Mr. de Venecia as one of the directors of the Thai companies.
VEPC and Vinter are the EPC supplier and the EPC construction service contractor, respectively, for the solar power project in Minbu District, Magway Region, Myanmar.
The owner-developer of the project is Green Earth Power (Myanmar), which is the holder of the power purchase agreement with the Myanmar government’s energy and power ministry, the company said.
The plan, design and construction of the project started in 2016. The first phase, which is under construction, is expected to be completed by the first quarter of 2019.
Basic Energy said the equity investments in the Thai companies marked its foray into solar-related energy projects overseas.
The company said it “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.” — Victor V. Saulon