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.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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
-
What is the 25x retirement rule and does it work?The 25x retirement rule has been around for decades but many experts question if it is a suitable strategy
-
When is the self-assessment tax return deadline?If you are self-employed, rent out a property or earn income from savings or investments, you may need to complete a self-assessment tax return. We run through the deadlines you need to know about
