Indias JSW to buy Canadas CIC Energy for $414.5 mn

Indian power producer JSW Energy Ltd agreed to buy Canada's CIC Energy Corp for C$422 million (USD 414.5 million), putting to end two-month long speculations on the coal explorer's future.
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Nov 24, 2010, 10.20 AM | Source: Reuters

India's JSW to buy Canada's CIC Energy for $414.5 mn

Indian power producer JSW Energy Ltd agreed to buy Canada's CIC Energy Corp for C$422 million (USD 414.5 million), putting to end two-month long speculations on the coal explorer's future.

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Indias JSW to buy Canadas CIC Energy for $414.5 mn

Indian power producer JSW Energy Ltd agreed to buy Canada's CIC Energy Corp for C$422 million (USD 414.5 million), putting to end two-month long speculations on the coal explorer's future.

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Indias JSW to buy Canadas CIC Energy for $414.5 mn
Indian power producer JSW Energy Ltd agreed to buy Canada's CIC Energy Corp for C$422 million (USD 414.5 million), putting to end two-month long speculations on the coal explorer's future.

JSW Energy's offer of C$7.42 per share, is a premium of 43% to CIC's close of C$5.20 on Monday on the Toronto Stock Exchange.

JSW Energy's offer is, however, lower than the C$7.75 per share offer from a "multi-billion dollar conglomerate" in early October and an offer from an Indian conglomerate for an indicative price of C$8.72 in mid-September.

CIC, which explores and develops coal properties in Botswana, had declined to name either of the parties.

CIC agreed not to solicit alternative bids, but, has agreed to a termination fee of C$10.5 million to JSW if it accepts an unsolicited superior offer, it said in a statement.

CIC's board has decided to recommend accepting the JSW offer after its financial adviser Deutsche Bank Securities Inc said the offer was "fair, from a financial point of view."

CIC's directors and officers, who hold the company's stock, have agreed to enter into a lock-up agreement with JSW and tender their shares, the company said.

JSW Energy's offer comes at a time when global firms are eyeing Canadian coal miners with Walter Energy Inc's USD 3.24 billion bid for Western Coal Corp last week being the most recent deal.

Motilal Oswal Investment Advisors Pvt Ltd is CIC's strategic advisor.

CIC stock was up 34% at C$6.95 in afternoon trade. JSW Energy shares closed at Rs 111.05 Tuesday on the Bombay Stock Exchange.

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Indias JSW to buy Canadas CIC Energy for $414.5 mn

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