Basic Energy Corp. (BEC) is acquiring up to 60 percent of Filoil Energy Co. Inc.

In a disclosure to the stock exchange Monday, the board of Basic Energy has given its go-ahead to proceed with the company’s equity investment in Filoil Energy.

“After further presentation to the Board, the members of the Board of Directors resolved to approve the proposed equity investment in Filoil Energy Company Inc. and acquire interest therein of up to 60 percent,” it said.

Out of the 10 directors, eight voted to approve while the two directors abstained upon declaring their direct and indirect interest in Filoil Energy.

The company also disclosed the members of the Related Party Transaction (RPT) Committee. Former Bureau of Internal Revenue Commissioner Kim Henares is the committee chairman while Reynaldo Gamboa, Andres Reyes Jr., and Jaime Martirez are the committee members.

“After review and discussion by the Risk Committee, approval, and endorsement to the RPT Committee for further deliberation and review, both Committees have unanimously approved the same and recommended the matter for Board approval,” Basic Energy said.

Last month, Basic Energy secured regulatory approval to increase its authorized capital stock (ACS) to P5 billion from P2.5 billion.

“The increase in the authorized capital stock is to provide sufficient shares of stock for subscription by potential strategic investor/s in the company and to provide flexibility to the company in the issuance of additional shares in the future to raise capital to fund new projects and any possible expansion plans without having to secure SEC [Securities and Exchange Commission] approval again for an additional increase in capital stock,” it said.

BEC is a publicly listed holding company in the Philippines, with business interests in various fields of renewable energy and alternative fuels, and oil and gas exploration and development.

Source: https://businessmirror.com.ph/2021/10/18/basic-energy-to-buystake-in-filoil-energy/