Oil exploration outfit Cairn Energy is in the process of selling an 8 per cent stake in Cairn India for up to 940m dollars, a source with direct knowledge of the matter has told Reuters.
That 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.
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.
Subscribe to 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
Cairn Energy held 18.3% of Cairn India as of end-June, stock exchange data showed and after its latest share offering, its stake will fall to about 10%.
The offering of nearly 153m shares has been made at between 317.90 and 328.30 rupees per share. The range represents a discount of between 5 to 8.7% from Cairn India's closing price of 345.55 rupees.
Citigroup is the sole book-runner for the transaction, the source said.
AB
-
-
Drive away with dividends from this insurer
This dividend champion is benefitting from multiple tailwinds that could boost its bottom line and shareholders' returns in the years ahead.
-
Revealed: Where are sellers cutting asking prices the most?
The top 10 areas where home sellers are slashing asking prices, according to Zoopla figures.
