October 6 (SeeNews) – Thailand-based Vintage Engineering PCL (BKK:VTE) plans to buy a 9% stake in Philippine energy developer Basic Energy Corp (PSE:BSC), or BEC, under a new partnership that envisages the joint exploration of renewable energy opportunities.

The two companies have entered into a memorandum of agreement under which VTE is expected to subscribe for 435.66 million shares of Basic Energy from its unissued capital stock at a total price of PHP 139.4 million (USD 2.9m/EUR 2.6m), the latter said in a bourse statement. Definitive agreements for this transaction will be signed once VTE carries out due diligence.

As part of the new strategic partnership, the two companies will pursue the exploration, development and production of renewable energy resources both in the Philippines and abroad. Following the newly-signed pact, the Thai engineering, procurement and construction (EPC) contractor has the right to invest in projects developed by Basic Energy.

The Philippine company has interests in renewable energy and alternative fuels, as well as in oil and gas exploration and development. It says that of all of its projects, the geothermal scheme in Mabini, Batangas is most advanced. The plan is to build a geothermal power facility with a capacity of between 20 MW and 60 MW, according to information on the company’s website.

Source: http://renewables.seenews.com/news/thai-vte-to-partner-with-philippines-bec-in-renewables-542302