India's Jindal Steel & Power has acquired Canadian
listed coal producer CIC Energy (CIC) for about $115 million. The acquisition
took place through the merger of CIC and Jindal Steel &
Power subsidiary Jindal BVI (JBVI).
Under the deal, JBVI will make a cash payment of C$2 per share to the current
CIC shareholders, totalling about C$116 million ($116 million). Jindal
Steel & Power did not respond to queries regarding funding for the
deal.
This deal will provide Jindal Steel & Power with access to CIC’s
high-quality thermal coal in Greater Mmamabula coalfield in south-east
Botswana, which has estimated reserves in excess of 6 billion tonnes. “The
Botswana Ministry for Minerals, Energy and Water Resources has given [its]
approval for the deal where CIC has its coal mines,†Jindal Steel &
Power said.
All other approvals for the merger have already been granted and the merger
certificate will be issued in the next few days, marking the completion of the
acquisition, the company added.
CIC in a filing to the Toronto Stock Exchange (TSX) said: “The deal was
approved by the shareholders of CIC Energy at the special meeting of
shareholders held on August 27. Approximately 97% of the votes cast at the
meeting were in favour of the proposed acquisition.”
Jindal Steel & Power has also acquired stakes in coal mines in South
Africa, Mozambique, Australia and Indonesia.
Source: SteelFirst
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