JSW Energy to buy Botswana-focused coal miner CIC Energy for Rs1,878 crore
24 Nov 2010
JSW Energy, the independent power arm of the $5 billion Sajjan Jindal-owned JSW Group, yesterday signed a deal to acquire power producer and coal miner CIC Energy Corporation, for C$422 million (Rs1,878 crore).
The deal, where the British Virgin Islands-based CIC, which operates in southern Africa has agreed to a break-up fee of C$10.5 million if the offer is not completed, is however vulnerable to rival bids by Hong Kong-based power producer Golden Concorde Holdings, which operates in China, and GMR Energy, the Bangalore-based power generation subsidiary of the G M Rao-controlled GMR Infrastructure.
Toronto-listed CIC, categorised as a junior coal miner, explores and develops coal properties in Botswana, where itsflagship property, the A-grade steam Mmamabula Coal Field is estimated to hold 2.6 billion tonnes of high-thermal coal.
It is also 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.
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.
Since Botswana is landlocked and exports coal via sea, CIC has planned to join a transportation consortium to build the 1,500km Trans Kalahari Rail line to a Namibian port on the southwest coast of Africa that is expected to begin in June 2011.
.webp)
.webp)
