By: Liezel Hill
TORONTO (mining weekly.com) - Toronto- and Botswana Stock Exchange-listed CIC Energy has extended the deadline on its agreement to be acquired by India's JSW Energy until March 15, the firm said on Monday.
CIC Energy owns the Mmamabula coal project in Botswana, and has a stake in the planned Moopane power project at the site, after concluding a shareholders agreement last year with Chinese-backed Golden Concord Group Limited (GCL).
A CIC spokesperson declined further comment until the JSW deal is completed.
The transaction was previously to have closed by February 28, but the company said last week that GCL had filed a notice of arbitration with the Hong Kong International Arbitration Center.
GCL claimed that CIC's local subsidiary had a contractual obligation to agree on the terms of a power-purchase agreement and a coal-supply agreement with GCL, and demanded written confirmation that it would do so.
CIC said at the time that the claims were without merit, but noted that the takeover agreement with JSW required CIC to show there were no outstanding liabilities or obligations surrounding the shareholders agreement with GCL.
JSW agreed in November last year to buy CIC Energy for C$7,75 a share, or about C$422-million.
CIC Energy shares had fallen as low as C$4,77 apiece on Monday afternoon, suggesting investors were not betting on the acquisition succeeding.
The Moopane power station would be Botswana's first private, base-load independent power producer and could begin production by the middle of 2013, the partners said last year.
Under the shareholder agreement GCL owns 70% of GCL-CIC Mookane Power Holdings, which in turn holds the equity in the two Botswana project companies that will build and operate the Mookane project. CIC Energy affiliates own the 30% balance.
CIC Energy owns the Mmamabula coal project in Botswana, and has a stake in the planned Moopane power project at the site, after concluding a shareholders agreement last year with Chinese-backed Golden Concord Group Limited (GCL).
A CIC spokesperson declined further comment until the JSW deal is completed.
The transaction was previously to have closed by February 28, but the company said last week that GCL had filed a notice of arbitration with the Hong Kong International Arbitration Center.
GCL claimed that CIC's local subsidiary had a contractual obligation to agree on the terms of a power-purchase agreement and a coal-supply agreement with GCL, and demanded written confirmation that it would do so.
CIC said at the time that the claims were without merit, but noted that the takeover agreement with JSW required CIC to show there were no outstanding liabilities or obligations surrounding the shareholders agreement with GCL.
JSW agreed in November last year to buy CIC Energy for C$7,75 a share, or about C$422-million.
CIC Energy shares had fallen as low as C$4,77 apiece on Monday afternoon, suggesting investors were not betting on the acquisition succeeding.
The Moopane power station would be Botswana's first private, base-load independent power producer and could begin production by the middle of 2013, the partners said last year.
Under the shareholder agreement GCL owns 70% of GCL-CIC Mookane Power Holdings, which in turn holds the equity in the two Botswana project companies that will build and operate the Mookane project. CIC Energy affiliates own the 30% balance.
Edited by: Liezel Hill
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