Canada's CIC Energy Corp. (ELC.TO: Quote) announced that it has entered into a binding merger agreement with India's Jindal Steel & Power (Mauritius) Ltd and Jindal (BVI) Ltd to receive an all-cash offer for C$2 per share.
The Consideration represents a premium of 65% to the volume-weighted average trading price for CIC Energy's shares on the TSX for 30-trading day period ending on July 17. It also represents a premium of 42% to the closing price of CIC Energy's shares on the TSX on July 17. The Consideration values the total equity of CIC Energy at about C$116.0 million on 58.0 million shares
Under merger terms, CIC Energy will merge with Jindal BVI, with Jindal BVI being the surviving entity. CIC Energy will be holding a special meeting of shareholders to consider and approve the Merger. The Meeting is scheduled to be held on or before August 28, 2012. The record date is July 9, 2012.
Both CIC Energy and Jindal have agreed to pay Jindal a termination fee of about C$3.5 million if the Merger is not completed in certain circumstances.
CIC Energy said the board recommends acceptance of the Merger by CIC Energy shareholders. The Merger deal provides for an outside date of October 9, for the completion of Merger.
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by RTT Staff Writer
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