(Repeats to additional subscribers)
* Says recieved indicative offer price of $8.50
* Says up to $3.50 payable on reaching project milestones
* Declines to name buyer
* Offer price values co at 3 times its Tuesday close
Sept 15 (Reuters) - Coal explorer CIC Energy Corp said it received a buyout offer from an Indian conglomerate engaged in coal mining and power generation for an indicative price of $8.50 a share.
The offer price represents a premium of 204 percent to CIC's Tuesday close of C$2.87 ($2.80).
The company, which explores and develops coal properties in Botswana, Africa, said up to $3.50 of the offer price will be payable upon fulfilment of certain project milestones.
CIC Energy, which also holds three licenses in the Mmamabula coalfield in southeastern Botswana, has been posting losses ever since it was incorporated in 2005.
It declined to name the purchaser, when contacted by Reuters.
CIC shares have almost doubled since March, when it signed a memorandum of understanding with GCL Projects to develop a 300-megawatt power station and mine at the Mmamabula coalfield.
They were trading up 13 percent at C$3.25 Wednesday on the Toronto Stock Exchange.
($1=1.026 Canadian Dollar)
(Reporting by Gowri Jayakumar in Bangalore; Editing by Vyas Mohan)
((gowri.jayakumar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: gowri.jayakumar.thomsonreuters.com@reuters.net)
Keywords: CICENERGY/
COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* Says recieved indicative offer price of $8.50
* Says up to $3.50 payable on reaching project milestones
* Declines to name buyer
* Offer price values co at 3 times its Tuesday close
Sept 15 (Reuters) - Coal explorer CIC Energy Corp said it received a buyout offer from an Indian conglomerate engaged in coal mining and power generation for an indicative price of $8.50 a share.
The offer price represents a premium of 204 percent to CIC's Tuesday close of C$2.87 ($2.80).
The company, which explores and develops coal properties in Botswana, Africa, said up to $3.50 of the offer price will be payable upon fulfilment of certain project milestones.
CIC Energy, which also holds three licenses in the Mmamabula coalfield in southeastern Botswana, has been posting losses ever since it was incorporated in 2005.
It declined to name the purchaser, when contacted by Reuters.
CIC shares have almost doubled since March, when it signed a memorandum of understanding with GCL Projects to develop a 300-megawatt power station and mine at the Mmamabula coalfield.
They were trading up 13 percent at C$3.25 Wednesday on the Toronto Stock Exchange.
($1=1.026 Canadian Dollar)
(Reporting by Gowri Jayakumar in Bangalore; Editing by Vyas Mohan)
((gowri.jayakumar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: gowri.jayakumar.thomsonreuters.com@reuters.net)
Keywords: CICENERGY/
COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.