Jindal Steel & Power will acquire Bahamas-based CIC Energy in a deal approved by shareholders of both organisations.
CIC Energy's only coal resource is situated in the Mmamabula Coalfields of southeastern Botswana and the company is listed on the Botswana Stock Exchange.
Approximately 97% of the votes cast at the meeting were in favour of the proposed acquisition, or 96.6% excluding the votes attached to the shares held by Messrs. Newfield and Kinross.
The company, on completion of the acquisition, will merge CIC Energy with its subsidiary Jindal BVI.
CIC Energy also secured an approval from the Botswana Competition Authority under the Competition Act (Botswana) to allow Jindal to go ahead with the acquisition.
The company's outstanding shareholders will receive CDN$2.00 a share, representing a premium of 65% to the volume-weighted average trading price ending 17 July 2012.
The company expects to close the merger within two weeks but no later than 9 October 2012.
Image: CIC Energy's only coal resource is situated in the Mmamabula Coalfields of southeastern Botswana. Photo: Jindal Steel and Power.