Following the decision by JSW Energy Limited to pull out of the merger talks with Mmamabula developers, CIC Energy said it will open its doors for other suitors.
In a strongly worded update to shareholders, the Virgin Island based and BSE quoted company said it believed shareholder interests will be better served by ‘pursuing an alternative transaction’.
“CIC Energy intends to open its data room to potential acquirers as soon as practicable following termination of the agreements with JSW,” the company said this week.
Its advisors, Deutsche Bank Securities Inc. and Motilal Oswal Investment Advisors Pvt Ltd., will soon be sanctioned to speak with prospective acquirers shortly thereafter.
It claimed it has already received several expressions of interest from other suitors.
The P2.7 billion merger deal hinged on CIC Energy obtaining a comfort letter from the Botswana government in relation to the 300 MW Mookane Domestic Power Project, as required under the Supplementary Agreement of December 16, 2010 (as amended) between JSW and CIC Energy.
“It is disappointing that after almost eight months the transaction with JSW has not been completed despite several extensions to the original deadline,” Greg Kinross, President of CIC Energy said.
“We look forward to beginning discussions regarding the acquisition of the Company with other major corporations that have expressed interest in CIC Energy in recent months, as well as other parties,” added Warren Newfield, CEO of CIC Energy.
“We believe this is the best course of action for shareholders. We are prepared to continue the process with JSW, but only on a non-exclusive basis,” he said.
JSW, on the other hand, said the deal could not continue because conditions were not fulfilled.
“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, was quoted by The Economic Times.