Jindal Steel and Power Ltd (JSPL) has acquired Canadian listed firm CIC Energy Corp for Rs650 crore in a deal that would give the Sajjan Jindal group firm access to CIC's estimated 6 billion tonnes of thermal coal assets in Botswana.
Following the announcement, the JSPL scrip was down 3.78 per cent at Rs 339.50 in the intraday trade on the BSE.
The acquisition of CIC would be executed through JSPL subsidiary Jindal BVI Ltd (JBVI).
The minister of minerals, energy and water resources of Botswana, where CIC has its coal mines, has already approved the change of control from CIC to JBVI, Jindal Steel said in a statement.
All other approvals for the merger had been granted and the merger certificate would be issued in the next few days marking the completion of the acquisition.
Following the merger of JBVI and CIC, JBVI would make a cash payment of C$2 per share to the current CIC shareholders aggregating C$116 million approximately.