JSPL acquires UK’s CIC Energy for $115 million

JSPL acquires UK’s CIC Energy for $115 millionIndia's Jindal Steel and Power (JSPL) has acquired UK-based, CIC Energy in a deal valued at about $ 115 million or about Rs 600 crore.

A subsidiary of Naveen Jindal-controlled JSPL, Jindal BVI Limited is expected to acquire 100 per cent shares of the company over a period of time and ultimately delist it from the Toronto Stock Exchange. The takeover value of $
115 million values the shares at $2 a unit.

CIC Energy, which was hit by litigation, controls 6 billion tonne coal reserves mainly in southern African nation of Botswana. JSPL has said that it will invest $700 million in developing the coal mine in the country and will also set up a power plant in the coming 2 to three years.

Sushil Maroo, director of finance, JSPL and the head of company's power division said, "We are planning to set up a 300 megawatt power plant in the region and will synchronise the production of the coal from the mine with the commissioning of the power plant."

He also said that the power division of JSPL is looking to set up 25,000 mw of capacity in India by 2020 and is looking for global coal assets to meet demand for coal supply.