BASIC Energy Corp. said on Wednesday that its plan to acquire 60% ownership in local oil company Filoil Energy Co., Inc. through an equity investment is part of its objective to become a complete energy enterprise.

In a regulatory filing, the listed holdings firm said the decision to invest in Filoil Energy “will culminate [Basic Energy’s] objective to become a complete energy enterprise with end-to-end activities from the upstream oil business, renewable energies or alternative power sources, and downstream gas and oil business and allied logistics services.”

The de Venecia-led company announced on Monday that its board of directors approved the investment, with eight in favor and two abstentions as they have direct and indirect interests in Filoil Energy.

Last month, the Securities and Exchange Commission (SEC) approved Basic Energy’s plan to double its authorized capital stock to P5 billion from P2.5 billion, which it will use to “raise funds for energy projects and to expand its existing business operations.”

In March, the firm secured a deal with the Energy department for a 50-megawatt wind project in Mabini, Batangas.

It currently holds five service contracts for the exploration and development of geothermal energy in Batangas, Bataan, Benguet, Camarines Sur, and Sorsogon.

The investment transaction with Filoil Energy is still being finalized by the parties involved, but the company said it would release further details once relevant contracts are executed.

Basic Energy further said in the disclosure that its investment in the downstream oil business will allow the company to enhance the value of its shares as its indirect interest in “the operating assets, property assets and retail stations under Filoil Energy… is seen to bring in revenues in the short to medium terms.”

Shares in Basic Energy at the local bourse went down by 5.48% or four centavos on Wednesday to finish at 69 centavos apiece. — Bianca Angelica D. Añago