NEW DELHI: JSW Energy today scrapped a deal for acquiring Canada's CIC Energy, saying the Toronto Stock Exchange-listed firm did not fulfil the buy-out conditions within the stipulated time frame.
" CIC Energy has not fulfilled all the conditions for the acquisition. They have not asked for any extension as well. Hence, the deal stands cancelled," JSW Energy Chief Executive Officer L K Gupta told media.
JSW Energy had announced last November that it has entered into an agreement with CIC Energy Corp, a company incorporated in the British Virgin Islands and listed on the Toronto and Botswana stock exchanges, to acquire all of its shares for a a total consideration of around USD 439 million.
JSW Eenergy had earlier exuded confidence that the deal would be completed by the final quarter of the last fiscal. However, after several extensions, the last agreed date, by both the parties, for the merger was on May 31, 2011.
CIC, which is developing Mmamabula Energy Complex at its Mmamabula Coal Field in Botswana, has an exportable surplus of up to 20 million tonnes per annum over the next 40 years.
JSW Energy has 1,430 MW power generation capacity and an additional 1,710 MW capacity is in advanced stages of completion. The company is targeting an aggregate generation capacity of 12,070 MW by 2015-16.
Meanwhile, Gupta said JSW Energy continues to look for suitable coal assets acquisitions across the globe, but did not divulge any further.
