More offers could emerge for CIC Energy-Analyst
TSX-listed CIC Energy, which was last week thrown into Canadian mining merger and acquisition frenzy with a bid from an unnamed Indian group, may become the target of a bidding war, Salman Partners analyst Mike Plaster said this week.
CIC would not disclose the name of the mystery Indian company that had offered to acquire it for $8,50 a share, or a total of C$450-million, because of a confidentiality agreement.
Plaster said in a research note that it could take a while for any firm offer to materialise, and that there was no guarantee one would, as the Indian conglomerate still had to conduct a due diligence.
“The due diligence work could take at least a month or more, followed by the negotiation of a definitive agreement, which could be another month or more. If an agreement can be reached, a shareholder circular would then be sent out, meaning that [continue reading]