Phil Dolan, Cairn Energy's Director of Operations, has bought up 50,000 shares in the firm one day after the oil and gas giant gave details of the long-awaited $3.5bn it intends to return to its lucky shareholders.
Dolan purchased the shares at £2.787 each.
The pay-out news came after Cairn's $5.5bn sale of a 30% stake in its Indian business to Vedanta Resources for $4.1bn, which in turn followed on an earlier sale of a 10% stake for $1.4bn.
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
The return of cash will take place as a 'B' share scheme which will give UK tax-payers the chance to receive cash in the form of income or capital, or a blend of both. UK shareholders will have the following three choices, they can: either receive a single dividend of 160p per B share; elect to have their B shares purchased at 160p per share; or elect to sell such B shares at 160p per B share at some point in the future, keeping hold of them for the time being.
The news prompted Oriel to upgrade the stock from hold to add on Tuesday.
The firm has lost 36% of its share price over the past year, but has gained nearly 10% in the past year.
Top Director Buys
Pacific Alliance Asia Opportunity Fund Ltd. (PAX)
Director name: Mr Christopher M Gradel
Amount purchased: 100,000 @ $1.15
Value: $115,000
Secure Trust Bank (STB)
Director name: Mr Paul Marrow
Amount purchased: 5,440 @ 910.00p
Value: £49,504
Alpha Pyrenees Trust Ltd. (ALPH)
Director name: Mr Richard D. Kingston
Amount purchased: 193,980 @ 25.50p
Value: £49,465
Universe Group (UNG)
Director name: Mr Stephen McLeod
Amount purchased: 1,300,000 @ 1.40p
Value: £18,200
Evolve Capital (EVOL)
Director name: Mr David Wallace Ballintine Snow
Amount purchased: 2,500,000 @ 0.50p
Value: £12,500
Albion Enterprise VCT (AAEV)
Director name: Mr Maxwell Packe
Amount purchased: 12,942 @ 90.40p
Value: £11,700
Top Director Sells
Jupiter Second Split Trust ZDP Shares (JSSZ)
Director name: Mr Harry D Hill
Amount sold: 30,000 @ 35.38p
Value: £10,614
NR
-
8 of the best houses for sale with annexesThe best houses with annexes – from a period property in the Lake District to a 13th-century house with a two-bedroom annexe in Saltwood, Kent
-
Zelenskyy moves to appease Donald Trump – what happens now?Ukraine’s president Volodymyr Zelenskyy is conceding ground to secure the least-worst deal possible, says Emily Hohler
