Cairn India, the Indian arm of British oil and gas company Cairn Energy, has decided to sell 5.37 per cent stake to Malaysian state oil and gas firm Petroliam Nasional, or Petronas, and Singapore-based Orient Global Tamarind Fund for Rs 2,534 crore ($625 million) to fund expansion plans.
The company will sell a total 113 million shares – 63.3 million shares to Petronas and 49.7 million shares to Tamarind, New Zealand billionaire Richard Chandler’s investment group – at Rs 224.30 each.The share sale price is 1.8 per cent lower than Cairn India’s closing price on March 14 and a 40 per cent premium to its listing price of Rs 160.
Following the share sale, Petronas’ stake in Cairn India will rise to 12.7 per cent, while Orient Global Tamarind will own 2.6 per cent. Cairn India’s holding will be reduced to 64 per cent.The share sale proposal was approved by Cairn India’s board of directors today and will be taken up for shareholders’ approval on April 16.The shares will be locked-in for one year from the date of allotment.
Read more in
The Business Standard article.
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