JSW to acquire Canadian coal firm for $415 mn
Power utility JSW Energy Ltd has agreed to acquire Canada's CIC Energy Corp for C$422 million ($414.5 million, Rs 1,900 crore) after talks spanning two months. JSW Energy is the independent power arm of the Sajjan Jindal-led JSW Group.business Updated: Nov 24, 2010 21:20 IST
Power utility JSW Energy Ltd has agreed to acquire Canada's CIC Energy Corp for C$422 million ($414.5 million, Rs 1,900 crore) after talks spanning two months. JSW Energy is the independent power arm of the Sajjan Jindal-led JSW Group.
"CIC has entered into a binding agreement with JSW Energy, whereby JSW has agreed to acquire 100% of the issued and outstanding shares of the company for C$7.42 per share pursuant to a formal takeover bid," CIC said in a statement.
JSW's offer represents a premium of 203% over the average trading price for CIC Energy's shares on the Toronto Stock Exchange for the 30-trading day period ending September 14 - the day prior to the announcement of the first proposal CIC received with respect to the acquisition of the company.
JSW is the third Indian company after the Aditya Birla Group and Tata Group to enter the Canadian resource market in the past three years.
"The Board has received an opinion from its financial advisor, Deutsche Bank Securities, that the consideration to be received by CIC Energy shareholders is fair, from a financial point of view," CIC said.
"We believe that the terms of this offer provide fair value for CIC Energy shareholders in the current environment", said Warren Newfield, chairman and CEO of CIC Energy.
CIC Energy is engaged in the advancement of the Mmamabula Energy Complex at the Mmamabula Coal Field in Botswana, Africa.