Canada’s CIC Energy shareholders approve JSW Energy’s C$422-mn takeover

Shareholders of Canadian power producer and coal miner CIC Energy Corporation, yesterday overwhelmingly voted in favour of its acquisition by JSW Energy, the independent power arm of the $5 billion Sajjan Jindal-owned JSW Group.

The deal that is expected to close by 28 February was approved by about 99.8 per cent of the votes cast at a special meeting held by CIC Energy.

In November, Mumbai-based JSW Energy had offered to buy British Virgin Islands-based CIC for $7.42 per share, valuing the Southern Africa focussed power producer and coal miner at around C$422 million. (See: JSW Energy to buy Botswana-focused coal miner CIC Energy for Rs1,878 crore)

Toronto-listed CIC, categorised as a junior coal miner, explores and develops coal properties in Botswana, where its flagship property, the A-grade steam Mmamabula Coal Field is estimated to hold 2.6 billion tonnes of high grade-thermal coal.

It is in the process of developing the Mmamabula power complex comprising a 1,200-MW power station that is targeted primarily to supply power to South Africa and a 300 MW power station to supply power to Botswana. It also holds a 30-per cent stake in Botswana's 300 MW Mookane Domestic Power Project.

CIC also has a coal to gas project called the CTH Project, which has the potential to convert some of the coal at the Mmamabula Coal Field to gas, fuels and petrochemicals.