UK?s Cairn Energy, which last year sold majority stake in its Indian unit to mining group Vedanta, is selling a little less than half of its remaining 18.3% shareholding in Cairn India for up to $940 million.
Cairn Energy, through Citigroup, is selling 15.3 crore shares or 8% of Cairn India in the range of R317.90 to R328.30 per share, market sources said. Cairn India shares on Monday closed at R345.55 apiece on the stock exchanges.
Edinburgh-based Cairn Energy had in June sold 6.67 crore or 3.5% stake in Cairn India for about $360 million.
It had, in the run up to seeking government approvals for selling 40% of its stake in Cairn India to Vedanta, claimed that it will retain about 22% interest in the company to give it ?the strength and flexibility to explore new opportunities for delivering transformational growth?.
But in less than a year from receiving all approvals, the company has decided to sell off all its shareholding in Cairn India and exit the country. Following the sale, Cairn Energy would retain about 10.3% shareholding in Cairn India.
Cairn wants to sell down its remaining stake in Cairn India to free up cash for new projects after spending $1 billion on a two-year exploration campaign in Greenland that failed to find oil and gas. ?Cairn has bought into a strong development programme in the North Sea that will require a substantial amount of capital,? said Stuart Joyner, an analyst at Investec Securities in London. ?Cairn India is no longer strategic and the shareholding is a source of funds for future development.?
