Cairn Energy sells further stake in Cairn India

Oil exploration outfit Cairn Energy has agreed to sell an eight per cent stake in Cairn India, equal to just over 152.6m shares, the firm has announced.

The sale will generate proceeds of around $910m, after costs, which will be used to fund Cairn's ongoing capital requirements, which include the development of discovered resources in the North Sea as well as Cairn's wider exploration led growth strategy.

It will be the second such deal in three months to pare holding in its former Indian unit. In June, Cairn Energy sold 3.5% of Cairn India to raise about $360m.

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On top of that, Cairn Energy last year sold a controlling stake in Cairn India to London-listed miner Vedanta Resources in an $8.7bn deal.

Following the sale, Cairn Energy holds around 10% of the Cairn India's issued share capital.

Simon Thomson, Chief Executive of Cairn Energy, said: "Cairn is delighted to have realised further value from its Rajasthan discoveries in India.

"In line with our stated strategy these proceeds will be used to deliver exploration led growth and fund the development of discovered resources in the UK and Norwegian North Sea.

"We are now extremely well positioned both financially and operationally to deliver on our existing high quality portfolio of development and exploration projects."

The share price rose 1.72% to 289.90p by 08:21.

NR