Power

Basic Energy gears up for expansion with entry of new management

Real estate developer Map 2000 Development Corp. is acquiring 67.8% of Basic Energy Corp. for P2.8 billion, marking its foray into the energy space.

The deal, which is still subject to the fulfilment of certain conditions, involves the acquisition of a total of 9.83 billion BEC shares for P0.285 per share, representing a premium over the par value of P0.25 apiece.

The shares to be issued will come from the increase in BEC’s authorized capital from P2.5 billion to P5 billion.

BEC said the entry of M2DC would will result in a fresh capital infusion into its operations, allowing it to grow and expand its current portfolio of energy-focused projects, including interests in other renewables such as solar, wind, biomass, petroleum, and other types of energy projects.

“With this, the company hopes to build a robust project portfolio that will bring in revenues in the short to medium term enhancing shareholder value,” BEC said.

M2DC is primarily engaged in real estate acquisition, development, and management, as well as in investing in real properties and acquiring shares of stocks of viable corporations. It believes that BEC is a perfect vehicle for its investment in the energy sector.

BEC has a 20 percent participation interest in the Iriga geothermal project.

It also has a 15 percent equity in Vintage EPC Co. and VTE International Construction Co., which are companies registered in Thailand and which are the primary engineering, procurement and construction (EPC) contractors of 220 megawatts (MW) solar power project in Minbu, Myanmar.

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