Jindal Steel and Power Limited, an Indian steel and energy company, announced that Jindal BVI, a subsidiary of the company, has acquired Canadian listed coal company CIC Energy Corporation for about USD 115 million by way of a merger of JBVI and CIC.

The Ministry 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 making the completion of the acquisition.

The deal will provide JSPL access to CIC's thermal coal in Greater Mmamabula coalfield in SE Botswana which is estimated to be in excess of 6 billion tonnes.

The deal will provide JSPL the opportunity to tap the highly lucrative and power deficient South African Development Community countries and given the huge resources, will also provide an opportunity to set up a Coal to Hydrocarbons project.

Pursuant to the merger of JBVI and CIC, JBVI being the surviving company will make cash payment of CAD 2 a share to the current CIC shareholders aggregating to CAD 116 million approximately. JBVI has already transferred the consideration amount to the depository for onwards payment to CIC shareholders.

Source - My Iris

(www.coalguru.com)