Wednesday, September 15, 2010

CIC Energy receives takeover proposal from Indian company

CIC Energy Corp., a British Virgin Islands-registered company engaged in the exploration, development and operation of coal properties in Southern Africa, and trading on the stock exchanges of Toronto and Botswana, announced that it has received a takeover bid from an unidentified Indian conglomerate. In the takeover proposal, the Indian company offered an “indicative price of US$8.50 per share” for each of BVI company's shares, and with almost 52.6 million shares of CIC Energy this would make US$447 million. This is almost three times higher than the market value of the BVI company, which is around US$166.4 million by this day.

It is said in the press-release of CIC Energy that, along with the other terms and conditions of the proposal, the price will be subject to negotiation and may change. The committee of independent directors is formed to evaluate the proposal.

According to CIC Energy, the unidentified Indian conglomerate, as well as the BVI company, has interests in coal mining and power generation.