After dumping JSW Energy, Canada’s CIC Energy to ink $114 mn deal with JSPL

After failing to do a deal with JSW Energy, Canadian coal developer CIC Energy Corp today agreed to be acquired by Jindal Steel & Power (JSPL), for C$116 million ($114 million/Rs600 crore) in cash.

JSPL, run by Naveen Jindal, has offered to pay C$2 per share, a premium of 27 per cent over yesterday closing price of C$1.57 on the Toronto Stock Exchange.

British Virgin Islands-based CIC, categorised as a junior coal miner, has long been looking for partners to fund its coal mines, power plant and a coal to gas project in Botswana.

In September 2010, JSW Energy, a company promoted by Naveen Lindal's brother Sajjan Jindal, had agreed to buy CIC Energy for or $7.42 per share, valuing the company at around C$422 million (Rs1,878 crore). The transaction was expected to be completed by end-February 2011.

GMR Energy, the Bangalore-based power generation subsidiary of the G M Rao-controlled GMR Infrastructure, had also submitted a C$470 million bid - $55 million higher than JSW Energy's offer, but its proposal was rejected since it entailed making payments in two tranches subject to finalisation of the Trans Kalahari Rail Project.

CIC Energy called off the deal in June 2011, citing JSW Energy failure to complete the deal by the final deadline of 31 May 2011 despite several extensions. (See: CIC Energy calls off Rs1,878 crore buyout offer from JSW Energy)