Basic Energy to invest in Japan biomass project
De Venecia-led Basic Energy Corp. has signed an agreement for the possible acquisition of at least 10 percent stake in a 25 megawatt biomass power plant in Saga, Japan.
The planned investment is in line with Basic Energy’s thrust to expand its portfolio of renewable energy projects in the Philippines and abroad.
The term sheet signed with Vintage Holding Japan Co. Ltd, which holds full executive rights to the facility wholly-owned and controlled by Biomass Power GK, grants Basic Energy the exclusive right to negotiate and finalize the terms of the investment.
A refundable deposit will be made to begin the due diligence on IBP and the project.
Under the terms of the term sheet, Basic Energy will aim to complete the due diligence in 60 days but may ask for an extension subject to IBP’s consent.
Upon favourable results of the DD process on IBP and the project, the covering shareholders agreement will then be signed on or before June 30, 2018 during which time Basic Energy can opt to increase its planned investment to up to 20 percent.