CIC Energy to terminate agreements with JSW Energy,
but may continue discussions with JSW Energy on a non-exclusive basis
ROAD TOWN, Tortola, British Virgin Islands, May 31, 2011 /CNW/ - CIC
Energy Corp. ("CIC Energy" or the "Company") (TSX:ELC, BSE:CIC Energy)
today announces that its board of directors has approved the
termination by the Company of the Acquisition and Supplementary
Agreements with JSW Energy Limited ("JSW") in accordance with their
terms as the proposed acquisition of the Company by JSW will not be
completed by the required deadline of May 31, 2011. A notice of
termination will be sent to JSW on June 1, 2011.
CIC Energy believes shareholder interests will be better served by
pursuing an alternative transaction. While CIC Energy is willing to
continue discussions with JSW Energy, any such discussions would have
to be on a non-exclusive basis.
CIC Energy intends to open its data room to potential acquirers as soon
as practicable following termination of the agreements with JSW. CIC
Energy has already received several expressions of interest as was
reported in the Company's news release of April 28, 2011. It is
expected that CIC Energy advisors, Deutsche Bank Securities Inc. and
Motilal Oswal Investment Advisors Pvt Ltd., will begin speaking with
the advisors of prospective acquirers shortly thereafter.
"It is disappointing that after almost eight months the transaction with
JSW has not been completed despite several extensions to the original
deadline," said Greg Kinross, President of CIC Energy, "we thank
shareholders for their patience and understanding and remain committed
to unlocking value for shareholders".
"We look forward to beginning discussions regarding the acquisition of
the Company with other major corporations that have expressed interest
in CIC Energy in recent months, as well as other parties," said Warren
Newfield, CEO of CIC Energy. "We believe this is the best course of
action for shareholders. We are prepared to continue the process with
JSW, but only on a non-exclusive basis."
Arbitration by GCL Botswana
In respect of the arbitration process recently initiated by GCL Botswana
Limited ("GCL Botswana"), CIC Energy continues to regard it as being
entirely without merit. Although discussions have taken place between
the Company and GCL Botswana with a view to settling the dispute and
terminating the underlying shareholders' agreement, the situation
remains unresolved. The Company is open to further discussions with GCL
Botswana, but is considering all of its options to resolve its
CIC Energy will host a conference call with Warren Newfield, CEO and
Chairman, and Greg Kinross, President to discuss this news release on
Tuesday May 31, 2011 at 4:00 p.m. Eastern Time (10:00 p.m. SAST).
To participate in the conference call, investors and media from the US
and Canada should dial 1-888-231-8191 prior to the scheduled start
time. International callers should dial +1 (647) 427-7450.
About CIC Energy Corp.
CIC Energy Corp. is engaged in the advancement of the Mmamabula Energy
Complex at the Mmamabula Coal Field in Botswana, Africa. This planned
Complex consists of one or more Power Projects, an Export Coal Project
and a potential Coal-to-Hydrocarbons Project.
CIC Energy has a treasury of approximately CDN$16 million and has 52,573,969 shares outstanding and 70,140,417 shares fully diluted including
13,061,448 warrants which have not vested. CIC Energy is listed on the Toronto
Stock Exchange (TSX:ELC) and the Botswana Stock Exchange (BSE:CIC
This news release contains certain "forward-looking information". All
statements, other than statements of historical fact that address
activities, events or developments that CIC Energy believes, expects or
anticipates will or may occur in the future are forward looking
information. Such forward looking information reflects the current
expectations or beliefs of CIC Energy based on information currently
available to CIC Energy. Such forward-looking information includes,
among other things, the anticipated termination by CIC Energy of the
agreements with JSW and related timing thereof, expected discussions
(including the subject matter thereof) with potential acquirers and the
expected timing for the commencement of such discussions and the
Company's plans. Forward-looking information is subject to significant
risks and uncertainties and other factors that could cause the actual
results to differ materially from those discussed in forward-looking
information, and even if such actual results are realized or
substantially realized, there can be no assurance that they will have
the expected consequences to, or effects on, CIC Energy or its
shareholders. Factors that could cause actual results or events to
differ materially from current expectations include, but are not
limited to, the failure of CIC Energy to resolve the alleged dispute
with GCL Botswana. Forward-looking information speaks only as of the
date on which it is made and, except as may be required by applicable
securities laws, CIC Energy disclaims any intent or obligation to
update any forward-looking information, whether as a result of new
information, future events or results or otherwise. Although CIC Energy
believes that the assumptions inherent in forward-looking information
are reasonable, forward-looking information is not a guarantee of
future performance and accordingly, undue reliance should not be put on
such information due to the inherent uncertainty therein.
SOURCE CIC Energy Corp.
For further information:
For additional information on CIC Energy and its projects visit the Company's website at www.cicenergy.com or contact:
Erica Belling, CFA, P.Eng.
VP Investor Relations
Tau Capital Corp.
Tel: (416) 361-9636 x 243