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CIC Energy acquires leading African energy consultancy group

BVI-based CIC Energy Corp., has announced that it has agreed to acquire Southern African Development through Electricity Ltd. (SAD-ELEC), which is based in Johannesburg. SAD-ELEC is a leading consultancy group in the Southern African energy sector, functioning as strategic advisor in energy-related issues. SAD-ELEC has been providing advisory services to CIC Energy since August, 2005, with focus on legal, regulatory and utility issues, power market analysis, commercial arrangements, and transmission integration for the Mmamabula Energy Project Power Station, which is the main exploration and development object of CIC Energy.

A wholly-owned subsidiary of CIC Energy has agreed to purchase SAD-ELEC’s “Core Business”, the settlement effective January 1, 2007. This includes SAD-ELEC’s consulting, advisory and management business, along with the services of certain senior executives, including Tore Horvei, Mike Page, Stefan Regardh, Les Kugel and Cosmas Gutu.  They will manage key aspects of Mmamabula, in particular related to the planned implementation and operation phases. The Agreement includes such commercial terms as cash payment of R6.5 million (approximately CDN$1.07 million) and the issuance of 130,000 common shares and 100,000 common share purchase warrants of CIC Energy.

The President and CEO of CIC, Mr. Gregory Kinross, has stated in his comments, “We are delighted to have SAD-ELEC senior personnel making the transition from their former,
limited advisory role to their new role as senior members of the CIC team. The
SAD-ELEC executives are leaders in their field, and bring to the Company
in-depth knowledge and experience of the Global and Southern African
electricity and energy industries and regulatory environment, as well as
established relationships with key industry stakeholders in Southern Africa.
We believe that they will make a valuable contribution to the growth of CIC,
by enhancing the depth of management and professional expertise within the
Company.”

This entry was posted on Thursday, January 4th, 2007 at 10:50 pm and is filed under BVI Company Mergers & Acquisitions, BVI company investments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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