Cairn Energy plans to raise $940 million by selling Cairn India shares
BY RAGHAVENDRA UPADHYAYA and KENAN MACHADO
MUMBAI--Cairn Energy plans to raise about $940 million by selling a part of its stake in Cairn India Ltd. on Tuesday, according to a term sheet seen by Dow Jones Newswires.
Cairn UK Holdings Ltd., a unit of Cairn Energy, is looking to sell 152.63 million Cairn India shares in a price band of 317.90 rupees ($5.95) to 328.30 rupees each.
Shares in the Indian energy explorer, now majority owned by the Vedanta group, closed 1.2% down at 345.95 rupees Monday on the Bombay Stock Exchange. At 1410 GMT, shares in Cairn Energy were down 0.1% at 283.50 pence in London after reaching a high of 292.20 pence in early trade.
After the sale, planned through direct bulk deals on India's stock exchanges, Cairn UK Holdings' stake in Cairn India will come down to 10.3% from 18.28%, the term sheet showed.
A Cairn Energy spokesman didn't respond to an email seeking comment.
U.K.-based Cairn Energy has been reducing its stake in the Indian company, which operates the country's largest onland oil block.
In December, Ciarn Energy completed its sale of a 58.5% stake in Cairn India to Vedanta Resources PLC (VED.LN) and the mining company's units for $8.67 billion. In June, it sold another 3.5% stake for $360 million.
Citigroup is the sole bookrunner for the planned share sale.
Dow Jones Newswires