JSW has agreed to offer to acquire 100% of the issued and outstanding shares of the company, including shares issuable pursuant to the exercise of outstanding options, for $7.28 per share pursuant to a formal take-over bid.
CIC Energy owns and develops coal mines in Botswana in Africa with reserves of about 2.6 billion tonnes of thermal coal, used primarily by power plants.
JSW said, the acquisition will help it meet its long-term coal requirements for its existing power projects and allow JSW to accelerate the expansion of its projects that rely on imported coal.
Pursuant to the agreement, JSW will be required to commence the Offer by 20 December 2010, subject to the satisfaction of certain conditions, and the acquisition is scheduled to be completed by March , 2011.
