Jindal Steel and Power Ltd (JSPL) has acquired Canadian listed firm CIC Energy Corp for Rs 650 crore ($115 million). The acquisition will give JSPL access to CIC’s estimated six billion tonnes thermal coal assets in Botswana.

Following the announcement, the JSPL scrip shed 3.78 per cent to trade at Rs 339.50 in the intraday trade on the BSE.

Jindal Steel is acquiring CIC through its subsidiary Jindal BVI Ltd (JBVI).

The Minister of Minerals, Energy and Water Resources of Botswana, where CIC has its coal mines, has already approved the change of control from CIC to JBVI, Jindal Steel said in a press release.

All other approvals for the merger have already been granted and the merger certificate will be issued in the next few days marking the completion of the acquisition.

Pursuant to the merger of JBVI and CIC, JBVI will make a cash payment of C$2 per share to the current CIC shareholders aggregating C$116 million approximately.

The deal will provide Jindal Steel, the opportunity to tap the highly lucrative and power deficient South African Development Community (SADC) countries and given the huge resource, will also provide an opportunity to set up a coal to hydrocarbon project.

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