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METRO
Pacific Investments Corp. (MPIC) yesterday signed a
memorandum of understanding (MOU) with Basic Energy
Corp. (BEC) for a potential partnership engaged in
ethanol production.
The
companies, which are both listed at the Philippine Stock
Exchange (PSE), said they will assess the viability of
establishing a joint-venture company that will engage in
the production of ethanol and other related alternative
fuels, after MPIC conducts due diligence on BEC’s
planned ethanol projects.
MPIC,
which holds interest in water company Maynilad, as well
as in various real estate and health-care enterprises,
said its planned entry in ethanol production is in line
with its fundamental direction to create long-term value
for shareholders to look into opportunities in vital
sectors of the economy.
“Discussions are still in the preliminary stages and
only upon completion of the due diligence review can the
parties develop and reach an agreement on the framework
that will include the ownership, organizational and
transaction structure for a joint venture,” said MPIC.
Ethanol
can be used as a fuel mainly as a biofuel alternative to
gasoline. Because it is easy to manufacture and process,
and can be made from very common crops, such as sugar
cane and corn, it is increasingly becoming a popular
alternative to gasoline in some parts of the world.
BEC’s
plan is to establish an ethanol project, which includes
the building of a fully integrated plant capable of
producing 200,000 liters of ethanol a day and
development of a 10,000-hectare, leased sugar-cane farm.
It hopes to complete the project next year
The said
venture will be funded by the proceeds of its planned
follow-on offering of as much as three billion shares
priced at P0.25 each. |
