On Monday, India's Jindal Steel & Power entered into a binding merger agreement with Canadian coal mine developer CIC Energy Corp. for C$116 million (US$114 million) in cash.
Jindal Steel's offer of C$2.00 per share is a 27 percent premium of the CIC's closing cost on Monday. "In the current challenging economic and capital markets environment, we believe that this offer provides fair value for CIC Energy shareholders," CIC Chief Executive Warren Newfield said.
CIC operates a coal mine in Mmamabula in Botswana with an estimated coal reserve of 2.4 billion metric tons.