Basic Energy to acquire stake in Japan biomass power plant

BEC will work to complete the due diligence process in 60 days, which may be extended as may be mutually agreed by the parties.
(Photo from http://www.basicenergy.ph/)

MANILA — Listed Basic Energy Corp. (BEC) is acquiring a minimum 10-percent stake in a 25-megawatt (MW) biomass power plant located in Japan, in line with its thrust to expand its portfolio of renewable energy projects here and abroad.

BEC told the local bourse it signed a term sheet with Vintage Holding Japan Company Limited (VHJ) for the possible acquisition of a stake in its power plant at Karatsu City in Saga Prefecture.

VHJ holds full executive rights to the facility that is wholly-owned and controlled by Innocent Biomass Power GK (IBP).

The term sheet, a non-binding intention of BEC to invest in the power project, grants the company the exclusive right to negotiate and finalize the terms of the investment with VHJ.

BEC will work to complete the due diligence process in 60 days, which may be extended as may be mutually agreed by the parties.

“BEC intends to invest 10 percent of the total equity of IBP, with an option to increase up to 20 percent of total equity of said companies after satisfactory results of the due diligence work on IBP and its project,” added the company.