CIC Energy says in talks with India's Jindal Steel

Wed Jul 18, 2012 9:50am EDT
 
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TORONTO (Reuters) - CIC Energy Corp ELC.TO on Wednesday said it is in talks with India's Jindal Steel & Power Ltd (JNSP.NS: Quote), which has expressed an interest in acquiring the Toronto-listed coal mine developer.

Jindal is offering to acquire Botswana-focused CIC for C$2 a share, a 42 percent premium to CIC's closing price on Tuesday of C$1.41.

"While negotiations are ongoing, a binding agreement has not yet been signed. Therefore there can be no assurance that any transaction will result from these discussions, or as to the timing, structure or terms of any transaction," CIC said in a statement.

CIC said it was making the announcement in response to news reports that the companies were in talks. India's Economic Times reported that Jindal was close to acquiring a controlling stake in CIC. [ID:nL4E8II0TY]

Shares of CIC jumped 18 percent to C$1.66 Wednesday morning on the Toronto Stock Exchange.

(Reporting by Euan Rocha; editing by John Wallace)