Cairn Energy selling 8 per cent stake in India arm

25 Sep 2012

UK's Cairn Energy, which sold its majority stake in its Indian unit to mining group Vedanta, last year is selling a little less than half of its remaining 18.3 per cent shareholding in Cairn India for up to $940 million.

Through Citigroup Inc, Cairn Energy, is selling 15.3 crore shares or 8 per cent of Cairn India in the range of Rs317.90 to Rs 328.30 per share, according to market sources.

The company's shares closed at Rs345.55 apiece on the stock exchanges yesterday.

In June the Edinburgh-based explorer sold 6.67 crore or 3.5 per cent stake in Cairn India for about $360 million.

The company had at the time of seeking government approvals for the sale of 40 per cent of its stake in Cairn India to Vedanta claimed that it would retain about 22-per cent interest in the company to give it "the strength and flexibility to explore new opportunities for delivering transformational growth".

However, less than a year after receiving all approvals, the company has decided to sell off all its shareholding in Cairn India and exit the country.