Inc. made yet another foray into the resource-rich Canadian market with JSW Energy buying the Canadian coal company CIC Energy for $422 million, thereby giving it a significant foothold in the lucrative coal sector in southern Africa.
JSW joins Aditya Birla Group, Vedanta and the Tata Group in entering Canada in the past two to three years.
The deal at $7.42 a share has been given the green signal by the board of CIC Energy, which is listed in both Toronto and Botswana in southern Africa. In Botswana, CIC Energy operates the Mmamabula coal and power station project.
The deal is JSW's second acquisition in the coal sector in southern Africa within a year. Earlier, the Indian company had acquired a stake in South African Coal Mining Holdings .
The JSW offer to the Canadian company marks a 203 percent premium over the average trading price for CIC Energy shares on the Toronto Stock Exchange for the 30-trading day period ending Sep 14 - the day before the company received takeover proposal.
However, the $7.42 per share offer is below the non-binding $7.75 that the Canadian energy company received last month.
"We believe that the terms of this offer provide fair value for CIC Energy shareholders in the current environment," CIC CEO Warren Newfield said in a statement after the JSW offer.
"With South Africa's increasingly apparent shift in energy policy the outlook for coal-based power producers looking to supply South Africa has weakened," Newfield added.
While the Tatas own the iron-ore Millennium Corporation in Nova Scotia province, the Aditya Birla Group controls an iron ore mine near St. Johns.
Showing posts with label JSW. Show all posts
Showing posts with label JSW. Show all posts
Wednesday, November 24, 2010
Wednesday, November 10, 2010
JSW Energy plans Rs 3,300-cr expansion
JSW Energy will invest Rs 3,300 crore to expand the capacity at its 860 megawatts (MW) power plant at Vijayanagar in Karnataka by 660 mw, the company said on Monday.
The Vijayanagar expansion plan raises the company’s total expansion target for 2015 to 12,050 MW from 11,390 MW aimed earlier, said chief financial officer Pramod Menon.
The company currently has an operational capacity of 1,430 MW.
The Vijayanagar brownfield expansion would be financed with a debt-to-equity ratio of 3:1. Work on the thermal power plant would start in April and is expected to be completed in about 42 months, the Mumbai-headquartered company said.
The company is working on financial closure of its upcoming units at Chhatisgarh (1,320 MW) and West Bengal (1,620 MW) and the financing of its Ratnagiri power project (3,200 MW). “West Bengal financial closure may happen by March. Financial closure of Chhatisgarh may get spilled over to June,” Mr Menon told reporters at a press meet.
The company hopes to complete the refinancing loans worth Rs 3,375 crore raised for its 1,200-MW Ratnagiri power plant by December. “We hope to lower the interest rate by 100-150 basis points,” said joint managing director LK Gupta.
The company sees its consolidated debt rising to Rs 9,250 crore by March from around Rs 8,500 crore now.
The company reported a consolidated net profit of Rs 184.6 crore for the quarter ended September, clocking a modest growth of 6.1% year-on-year weighed by higher fuel cost. Company’s consolidated net sales rose to Rs 777.4 crore in the quarter from Rs 557.97 crore. The company saw a 7% y-o-y fall in average realisation per unit sales at Rs 4.3.
The Vijayanagar expansion plan raises the company’s total expansion target for 2015 to 12,050 MW from 11,390 MW aimed earlier, said chief financial officer Pramod Menon.
The company currently has an operational capacity of 1,430 MW.
The Vijayanagar brownfield expansion would be financed with a debt-to-equity ratio of 3:1. Work on the thermal power plant would start in April and is expected to be completed in about 42 months, the Mumbai-headquartered company said.
The company is working on financial closure of its upcoming units at Chhatisgarh (1,320 MW) and West Bengal (1,620 MW) and the financing of its Ratnagiri power project (3,200 MW). “West Bengal financial closure may happen by March. Financial closure of Chhatisgarh may get spilled over to June,” Mr Menon told reporters at a press meet.
The company hopes to complete the refinancing loans worth Rs 3,375 crore raised for its 1,200-MW Ratnagiri power plant by December. “We hope to lower the interest rate by 100-150 basis points,” said joint managing director LK Gupta.
The company sees its consolidated debt rising to Rs 9,250 crore by March from around Rs 8,500 crore now.
The company reported a consolidated net profit of Rs 184.6 crore for the quarter ended September, clocking a modest growth of 6.1% year-on-year weighed by higher fuel cost. Company’s consolidated net sales rose to Rs 777.4 crore in the quarter from Rs 557.97 crore. The company saw a 7% y-o-y fall in average realisation per unit sales at Rs 4.3.
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