Botswana to get boost from Jindal, CIC deal
India’s Jindal Steel & Power has entered into a merger agreement with Toronto-listed coal mining company CIC Energy in a deal that is expected to transform Botswana’s economy as it unlocks its coal reserves. In the deal, shareholders will receive C$2 (R17) a share for the total equity of CIC Energy, valuing the company at C$116 million. Robert Appelbaum, the head of Webber Wentzel’s southeast Asia group and international lead counsel to Jindal Steel & Power on this transaction, said yesterday that this deal was expected to spur the Botswana government into developing a new railroad to enable coal to reach ports in either Mozambique or Namibia. CIC Energy is developing the Mmamabula coal field in Botswana, the world’s second-biggest coal reserve, and plans to build a power station at the complex. – Dineo Faku
Caterpillar raises full-year forecast
Caterpillar, the largest maker of construction and mining equipment and considered a US economic bellwether, raised its full-year earnings forecast as increasing demand from North American builders and overseas mining companies bucks the global economic slowdown. Profit would be about $9.60 (R81) a share in 2012, up from a previous forecast of $9.50, the company said yesterday. It also narrowed its projected range for sales to $68 billion to $70bn from the $68bn to $72bn forecast in April, citing “weaker economic conditions” and the stronger dollar. Caterpillar is selling more excavators, scrapers and bulldozers even as it sees a slowdown in some of its largest markets. – Bloomberg