Canada’s CIC Energy shareholders approve JSW Energy’s C$422-mn takeover
22 Jan 2011
Shareholders of Canadian power producer and coal miner CIC Energy Corporation, yesterday overwhelmingly voted in favour of its acquisition by JSW Energy, the independent power arm of the $5 billion Sajjan Jindal-owned JSW Group.
The deal that is expected to close by 28 February was approved by about 99.8 per cent of the votes cast at a special meeting held by CIC Energy.
In November, Mumbai-based JSW Energy had offered to buy British Virgin Islands-based CIC for $7.42 per share, valuing the Southern Africa focussed power producer and coal miner at around C$422 million. (See: JSW Energy to buy Botswana-focused coal miner CIC Energy for Rs1,878 crore)
Toronto-listed CIC, categorised as a junior coal miner, explores and develops coal properties in Botswana, where its flagship property, the A-grade steam Mmamabula Coal Field is estimated to hold 2.6 billion tonnes of high grade-thermal coal.
It is in the process of developing the Mmamabula power complex comprising a 1,200-MW power station that is targeted primarily to supply power to South Africa and a 300 MW power station to supply power to Botswana. It also holds a 30-per cent stake in Botswana's 300 MW Mookane Domestic Power Project.
CIC also has a coal to gas project called the CTH Project, which has the potential to convert some of the coal at the Mmamabula Coal Field to gas, fuels and petrochemicals.
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