CIC Energy Corp said that the date for its acquisition by Indian firm JSW Energy Ltd has been extended, days after the Canadian coal miner's partner in a power project in Botswana filed an arbitration notice. The closing date, which was to expire on Monday, has been extended to March 15.

Last week, CIC Energy's partner GCL Botswana filed a notice of arbitration over a power purchase and a coal supply agreement. CIC and GCL Botswana had signed an agreement for a 300 megawatt power station and an associated coal mine that would be built at CIC's Mmamabula coalfield in Botswana.

The merger agreement between CIC and JSW says the closing of the deal is conditional to there being no outstanding liabilities or obligations between CIC and GCL.

The company said that it maintains that the arbitration proceeding has no merit and there is no legal basis for the alleged dispute.

CIC had agreed to a CAD 422 million, or CAD 7.42 a share, buyout offer from JSW Energy, a part of the Sajjan Jindal-controlled JSW Group, which also runs JSW Steel in November.

(Sourced from Reuters)