Philippine-listed company Basic Energy Corp is looking to acquire up to 20 per cent stake in a Japan-based power plant wholly owned and controlled by BiomassPower GK (IBP).

Basic Energy signed on Thursday a term sheet with Vintage Holdings Japan Company Limited (VHJ) for the possible acquisition of a minimum 10 per cent stake in a 25 MW biomass power plant in Karatsu City, Saga Prefecture, Japan.

VHJ is a wholly owned subsidiary of Thailand-based Vintage Engineering Public Company Ltd (VTE).

The term sheet grants Basic Energy the exclusive right to negotiate and finalize the terms of the investment with VHJ.

A refundable deposit will be made to begin the due diligence process on IBP and the project.

Under the term sheet, Basic Energy will strive to complete the DD process in 60 days, but may ask for an extension subject to IBP’s consent.

“Upon favorable 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 per cent,” Basic Energy said in a statement.

The latest power venture is in line with Basic Energy’s thrust to expand its portfolio of renewable energy projects in the Philippines and abroad. Basic Energy’s latest trading price hiked 1.82 per cent or P0.0040 to close at P0.224 on Friday (December 8).

Source: https://www.dealstreetasia.com/stories/philippines-basic-energy-to-acquire-stake-in-japan-based-power-plant-88056/