CIC confident of finding new buyer after JSW deal breaks up

CIC confident of finding new buyer after JSW deal breaks up

CIC Energy is optimistic that it will receive offers from companies interested in its power-generation and coal-export projects in Botswana, after the firm terminated a takeover agreement with India's JSW Energy, chairperson Warren Newfield said on Tuesday. The company has been approached by “more than two” parties and is not concerned that it will not be able to secure a new offer, CIC executives told analysts on a conference call. They declined to provide more details, but, when pressed, conceded that the potential suitors included interest from India, as well as elsewhere in the world. CIC said earlier on Tuesday that it was also still open to nonexclusive negotiations with JSW, but that it “believes shareholder interests will be better served by pursuing an alternative transaction.” Shares in the company rose 5,3% on Tuesday, to C$3,16 apiece by 15:59 in Toronto. JSW, an Indian power utility, agreed in November last year to buy CIC Energy for C$7,75 a share, or about C$422-million. The parties have been trying to close the deal since then, and had set a deadline of May 31 for certain conditions to have been waived or met. JSW had wanted assurances from the government of Botswana related to a future power purchase agreement but was not able to reach an agreement before the cut-off date. CIC now intends to send a letter of termination to JSW, and will then open its data room to other potential buyers as soon as possible. “It is disappointing that after almost eight months the transaction with JSW has not been completed despite several extensions to the original deadline,” CIC president Greg Kinross said in a statement.