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.
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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.
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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.
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