Jindal BVI (JBVI), a subsidiary of steel major Jindal Steel and Power (JSPL) is acquiring 100% shares capital of coal CIC Energy Corporation (CIC), whose shares are listed on Canada Stock Exchange at C$2 per shares at a total cost of about $115 million. The Minister 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 marking the completion of the acquisition.
The deal will provide access to CIC's high quality thermal coal in Greater Mmamabula coalfield in SE Botswana which is estimated to be in excess of 6 billion tonnes (Approx) (including measured and indicated resource of 2.4bn tonnes).
The deal will provide the company the opportunity to tap the highly lucrative and power deficient South African Development Community (SADC) countries and given the huge resource, it will also provide an opportunity to set up a Coal to Hydrocarbons project.
