Mumbai: JSW Energy Ltd. said on Wednesday that it has scraped an agreement with the Toronto-listed CIC Energy Corp. for the acquisition of the latter’s shares as the Africa-focused energy company had not met certain pre-agreed conditions.
“CIC Energy had to meet certain conditions with respect to renewal of mining leases and procurement of letters of comfort from the Government of Botswana, which it could do within the stipulated time frame despite two extensions,” L K Gupta, joint managing director and chief executive of JSW Energy said over phone.
JSW Energy first announced that it had agreed to acquire CIC Energy in late November 2010 for CAD 422 million. CIC Energy was initially scheduled to meet the pre-agreed conditions by 28 February 2011, which got extended to 15 March and then to 31 March.
“Since CIC Energy didn’t seek a further extension, it was obvious that the deal wasn’t going anywhere,” Gupta said. He added that JSW Energy would now explore other long term coal reserves around the globe but would focus on other solutions in the short to medium term.