Cairn energy sells stake in Cairn India to raise $948 mn

UK’s Cairn Energy plc said on Tuesday that it has sold 8% stake in Cairn India for a net realisation of about $910 million or Rs. 5,005 crore.

UK’s Cairn Energy plc said on Tuesday that it has sold 8% stake in Cairn India for a net realisation of about $910 million or Rs. 5,005 crore.

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Following the sale, Cairn Energy retains about 10% shareholding in Cairn India, the company said in a press statement.

“At the General Meeting of the company held on May 17, 2012, shareholders authorised the board to dispose of all or part of Cairn Energy’s residual interest in Cairn India,” it said.

“Cash proceeds from the sale are expected to be $910 million (after transaction costs). The proceeds will be used to fund Cairn’s ongoing capital requirements, which incl-ude the development of discovered resources in the North Sea as well as Cairn’s wider exploration led growth strategy,” the statement added.