CIC Energy to shed equity in MEP

The Canadian company has already signed off 35 percent equity in the project to International Power Limited, its partner in MEPs development. This 35 percent shareholding is in CIC Energy's wholly owned subsidiary, Meepong Resources, through which CIC is developing the MEP. Meepong Resources owns Mmamabula East and Mmamabula South, which are the resource areas for the MEP's coal mine and power station.CIC Energy is expected to sell off another portion from its 100 percent shareholding in Meepong as part of a slew of initiatives to fund the US$3 billion project.

The Canadian company hopes to raise US$600 million (20 percent) of this US$3 billion via equity finance, with debt finance bringing up the remainder. During a recent media briefing, CIC Energy's President and Chief Executive Officer, Greg Kinross, revealed that interest in MEP stock was rising.