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Thursday, 25 November 10
JSW ENERGY BUYS CANADIAN COAL FIRM FOR $411 MN - NDTV PROFIT


NDTV Profit reported that, Sajjan Jindal-owned JSW Energy on Wednesday said it has entered into an agreement to buy out British Virgin Islands-based CIC Energy for about $411.2 million.

JSW would acquire all the shares of CIC Energy at a price of Canadian dollar (CAD) 7.42 per share, amounting to a total consideration of approximately CAD 422 million ($411.2 million), the company said in a late night release.

JSW Energy is the independent power arm of the JSW Group. It has operational capacity of 1,430 mega watt. In addition, 1,710 mega watt of generating capacity is in an advanced stage of completion. The company is targetting an aggregate generation capacity of 12,070 mega watt by 2015-16.

The acquisition will enable JSW to not only secure the long-term coal requirement for its existing projects but will also be able to accelerate the capacity expansion for its imported coal-based projects," JSW Energy Joint Managing Director and CEO L K Gupta said in the release.

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"CIC has approximately 2.6 billion tonnes of measured coal resources in the Mmamabula region of Botswana in southern Africa ...The reserves have good quality thermal coal with low sulphur that is adequate to meet all the project requirements of JSW Energy," JSW Chairman Sajjan Jindal said.

The reserves can be exploited with an explorable surplus of up to 20 million tonnes per annum over the next 40 years. The reserves can also meet the requirement to set up power plants in Botswana with a capacity of up to 2,000 MW, JSW Energy Vice chairman N K Jain said.

CIC is planning Mmamabula Energy Complex to develop coal mines for export, setting up power plants and conversion of coal to hydrocarbon, the statement said.

The company also said that coal production from the acquired fields is expected to begin over the next three-five years.

The acquisition is done through a subsidiary of JSW Energy. The deal is subject to regulatory approvals and completion of due diligence. The deal, JSW Energy said, is expected to be completed by the last quarter of the current financial year ending March 31, 2011.
Source: NDTV Profit



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