JSW Energy has scrapped a deal for acquiring Canada's CIC Energy as the Toronto Stock Exchange-listed firm did not fulfill the buy-out conditions within the stipulated time frame. JSW Energy had earlier shown confidence that the deal would be completed by the final quarter of the last fiscal but however, after several extensions, May 31, 2011 was the last agreed date for the merger by both the parties.
Last November, JSW Energy had entered into an agreement with CIC Energy Corp, a company incorporated in the British Virgin Islands and listed on the Toronto and Botswana stock exchanges, to acquire all of its shares for a total consideration of around $439 million.
JSW Energy has 1,430 MW power generation capacity and an additional 1,710 MW capacity is in advanced stages of completion. The company is targeting an aggregate generation capacity of 12,070 MW by 2015-16. It also continues to look for suitable coal assets acquisitions across the globe.
The company’s net profit has registered a marginal growth of 4.60% at Rs 885.61 crore as compared to Rs 846.67 crore for the year ended March 31, 2010. Its total income has grown by 63.09% at Rs 3981.15 crore as compared to Rs 2441.03 crore a year ago.
On consolidated basis, the group’s net profit stood at Rs 841.82 crore for the year ended March 31, 2011 as compared to Rs 745.49 crore for the year ended March 31, 2010, up by 12.92%. Its total income has increased by 82.26% at Rs 4427.54 crore for the year under review as compared to Rs 2429.26 crore a period ago.
CIC, which is developing Mmamabula Energy Complex at its Mmamabula Coal Field in Botswana, has an exportable surplus of up to 20 million tonnes per annum over the next 40 years.
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