CIC Energy Corp's buyout by JSW Energy Ltd might be terminated or delayed if it fails to get a "comfort letter" from the Botswana government for its 300 MW power project in Botswana. Last November, CIC had agreed to a C$422 million, or C$7.42 a share, buyout offer from JSW Energy, subject to CIC having obtained such a comfort letter from the Government of Botswana. CIC said it has begun talks with JSW and the government of Botswana. The discussions are expected to conclude by May 31. CIC said the deal may also be delayed pending talks and fulfilment of several conditions. It had expected to close the deal by end of May. If the proposed acquisition of CIC is not completed by May 31, either CIC Energy or JSW will be entitled to terminate the supplementary agreement, CIC said in a statement. Last month, the Botswana government had declined to renew one of CIC's two mining licenses.
"Should the supplementary agreement be terminated, CIC Energy will review its strategic plans, including exploring alternative corporate transactions."
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