New Delhi: Cairn Energy Plc on Tuesday sold 8 percent stake in Cairn India for USD 910 million as the UK-based firm winds down its interest in the firm that operates that nation's biggest oil field on land.
The Edinburgh-based firm, which last year sold 40 percent of its stake in Cairn India to Vedanta Resources for USD 5.5 billion, has in two tranches since June sold 11.5 percent stake at rate which is much less than Rs 355 per share that it got from billionaire Anil Agarwal-led mining group.
After Tuesday’s sale of more than 15.26 crore shares, Cairn Energy is still left with 10.28 percent stake in Cairn India.
The average sale price was Rs 323.12 (rpt) Rs 323.12 per share, which is less than the closing price of Rs 333.60 on the Bombay Stock Exchange (BSE).
In June, it had sold 6.67 crore shares or 3.5 percent stake in Cairn India for about USD 360 million at Rs 308.73 a share.
The proceeds of Tuesday’s sale will be used to help fund the development of Cairn Energy's recently acquired positions in the North Sea, where it has spent over USD 1 billion buying two companies, it said in a statement here.
Simon Thomson, Chief Executive, Cairn Energy Plc said, "Cairn is delighted to have realised further value from its Rajasthan discoveries in India.
"In line with our stated strategy these proceeds will be used to deliver exploration led growth and fund the development of discovered resources in the UK and Norwegian North Sea. We are now extremely well positioned both financially and operationally to deliver on our existing high quality portfolio of development and exploration projects."
Over the past two years, Cairn Energy has shifted its focus towards the North Sea and the Mediterranean, adding those regions to its core exploration assets in Greenland, as it moved away from India.
The company had on Monday launched the stock offering for between Rs 317.90 and Rs 328.30 per share, a discount of between 5 and 8.7 percent to Cairn India's closing price on Monday.
It had in the run up to seeking government approvals for selling 40 percent of its stake in Cairn India to Vedanta claimed that it will retain about 22 percent 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 percent shareholding in Cairn India.
First Published: Tuesday, September 25, 2012, 12:37