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