Basic Energy decides to transfer 67% of the stake to the property firm

BASIC ENERGY Corp. has reported that a real estate company is expected to buy at least 67% of the remaining capital stock.

In a notification of the stock exchange on Monday, the firm reported that it had concluded a memorandum of understanding providing for the selling of its 9,83 billion primary shares to MAP 2000 Creation Corp (M2DC).

Shares will be subscribed and distributed as a consequence of the raise of Basic Energy’s approved capital stock to P5 billion from P2.5 billion, which is pending approval from the Securities and Exchange Commission (SEC).

“[The] said capital raise was accepted by the shareholders of the organization at the Annual Meeting of Shareholders conducted on 23 October 2020,” said the disclosure.

In October, Basic Energy announced that it had obtained approval from its stakeholders to double its approved capital stock to P5 billion, consisting of 20 billion securities with a par value of P0.25 per share.

The business claimed that the rise in its approved capital stock was intended to generate adequate shares of the stock to be subscribed by prospective buyers.

“It is also intended to provide leverage for the group to seek additional shareholdings in the future in order to collect funds to finance new developments and the potential extension of current ventures, without the need to seek SEC approval again for an additional capital increase,” the firm added.

According to the disclosure, M2DC is a Philippine-registered firm with commercial interests in the purchase, production and management of real estate, among others.

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