Philippines' BEC, Thailand's VTE ink renewable energy business deal

Philippines' BEC, Thailand's VTE ink renewable energy business deal

Philippine-listed power firm Basic Energy Corp (BEC) and Thailand's Vintage
Engineering Public Company Ltd (VTE) signed a strategic partnership to
pursue business opportunities in renewable energy.

BEC earlier disclosed the deal involves the exploration, development, and
production of renewable energy resources in the Philippines and abroad.

VTE bought over 435 million shares of stock in BEC, a transaction subject to
compliance of the conditions precedent, representations and warranties and
covenants included in the agreement.

Financial terms of the share transaction were not disclosed.

"VTE has the right to invest in the Mabini Geothermal Project and other
projects of BEC, and VTE may increase its holdings of BEC shares in the
future, both subject to terms and conditions which shall be mutually agreed
upon by the parties in the future," BEC said in its statement.

Originally in the construction and engineering business, VTE is now
developing some energy projects in Japan, Myanmar, Indonesia and the
Philippines.

BEC has five service contracts in its portfolio awarded by Department of
Energy (DOE) for the exploration and development of geothermal energy in the
provinces of Batangas, Bataan, East Mankayan, Mountain Province, Ifugao,
Camarines Sur, Albay, and West Bulusan in Sorsogon.

As a holding company, BEC held equity investments in its subsidiaries,
namely investment holding company Basic Diversified Industrial Holdings Inc,
IT management company and service integrator iBasic Inc, biofuels developer
Basic Biofuels Corp, agricultural company Basic Ecomarket Farms Inc, oil
exploration firm Southwest Resources Inc, and geothermal energy development
company Basic Geothermal Energy Corp.

BEC and VTE last traded at P0.310 and THB3.14 per share on Wednesday
(February 15).

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Link to Original Article:
http://www.dealstreetasia.com/stories/philippines-bec-thailands-vte-ink-pact
-for-renewable-energy-biz-65063/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com