Listed Basic Energy Corp. said Tuesday its board of directors approved the acquisition of up to 60 percent of Filoil Energy Company Inc.
“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,” Basic Energy said in a disclosure to the stock exchange.
Both Basic Energy and Filoil Energy are now affiliated with Map 2000 Development Corp. of the Villavicencio group.
Basic Energy said the approval came after a review and discussion by the risk committee and approval and endorsement to the related party transaction committee for further deliberation and review.
Both committees unanimously approved the planned acquisition and recommended the matter for board’s approval.
Basic Energy did not provide other details about the acquisition, including cost and timetable, but the transaction completes the backdoor listing of Filoil Energy through Basic Energy.
M2DC, the parent company of Filoil Energy, earlier acquired 67 percent of the outstanding capital stock of Basic Energy for P2.8 billion. M2DC, which is controlled by businessman Rafael Villavicencio, holds 55 percent of Filoil Energy.
Basic Energy, established by businessman Oscar de Venecia, has a 20-percent participation interest in the Iriga Geothermal Project which is being operated by DESCO Inc. It also has a 15-percent equity in Vintage EPC Company and VTE International Construction Company which are the primary engineering, procurement and construction contractors of a 220-megawatt solar power project in Minbu, Myanmar.
Meanwhile, M2DC is engaged in real estate acquisition, development and management and in investing in real properties and acquiring shares of stocks of viable corporations and holds a majority stake in Filoil Gas and Energy.
Filoil Gas’s primary purpose is to engage or otherwise acquire, store, hold, transport, use, experiment with, refine, process, manufacture, blend, market, distribute, exchange, sell and otherwise dispose of, import, export, and handle, trade and generally deal in, by wholesale basis or retail through gasoline outlets, any and all kinds of petroleum products.
Basic Energy earlier said the investment by M2DC would result in a fresh capital infusion into the company, 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.
The share price of Basic Energy climbed 5.2 percent Monday to P0.60.