Cairn Energy selling 8 pc stake in Cairn India: Source
Posted on: 12:54 AM IST Sep 25, 2012
Mumbai: Cairn Energy is selling an 8 per cent stake in Cairn India for up to $940 million, a source with direct knowledge of the matter said, in a second such deal in three months to pare holding in its former Indian unit.
Cairn Energy last year sold a controlling stake in Cairn India to London-listed miner Vedanta Resources in an $8.7 billion deal. The British oil firm owned nearly 22 per cent of the Indian company as of March 31.
In June, Cairn Energy sold 3.5 per cent of Cairn India to raise about $360 million.
Cairn Energy held 18.3 per cent of Cairn India as of end-June, stock exchange data showed. After its latest share offering, its stake will fall to about 10 per cent.
Cairn Energy on Monday launched an offering of nearly 153 million shares of Cairn India for between 317.90 rupees and 328.30 rupees per share, said the source, who asked not to be identified as he was not authorised to speak to the media.
The range represents a discount of 5-8.7 per cent discount from Cairn India's closing price of 345.55 rupees.
Citigroup is the sole bookrunner for the transaction, the source said.