Jindal Steel to acquire Canada based CIC Energy

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Jindal Steel to acquire Canada based CIC Energy
Jindal Steel and Power Ltd (JSPL) has informed that its subsidiary namely Jindal BVI Limited will acquire 100% share capital in Canada-based CIC Energy.

CIC is a Canada listed company, JSPL will be spending $100-150 million on infrastructure in the landlocked country to mine and ship the coal.

The company is acquiring 100% share capital of CIC Energy Corp.(CIC) at C$2 per share at a total cost of about US$115 million.

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 and 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 said in the filing.

The deal will provide access to CIC's high quality thermal coal in Greater Mmamabula coalfield in SE Botswana which is estimated to be in excess of 6 billion tonnes (Approx) (including measured and indicated resource of 2.4bn tonnes).

The Jindal Steel and Power Limited stock was trading at Rs.339.05, lower by Rs 13.65 or 3.87%on BSE at 2.55 pm IST. The stock hit an intraday low of Rs.335.


Read more about: jindal steel
Story first published: Wednesday, September 5, 2012, 14:58 [IST]
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