Britain's Cairn Energy, which last year sold a controlling stake in its Indian unit, plans to sell another big chunk for up to $940 million, a source close to the company and reports said Monday. The move comes after the oil and gas company's net profits slumped in the first half of 2012, compared with last year, when it was boosted by the sale of most of its Indian division to India-focused resources giant Vedanta.
"Cairn plans to sell eight percent (in Cairn India) and is hoping to raise that kind of amount ($940 million)," the source told AFP. Cairn, which was transformed in recent years by successful exploration projects in India, has since turned its focus to offshore Greenland. However, it has so far failed to locate commercial quantities of oil and gas there.
The Edinburgh-based oil and gas explorer sold its 40-percent stake in Cairn India last December to Britain's Vedanta Resources for $6.5 billion after an acrimonious political battle. But it retained a 22-percent holding in Cairn India, which has been performing well for its new majority owner, Anil Agarwal of Vedanta Resources.
A Cairn Energy spokesman could not be reached for comment on the reported sales plans. Cairn Energy, through Citigroup, is selling eight percent of Cairn India in the range of 317.90 rupees to 328.30 rupees per share, the Press Trust of India reported, quoting market sources. There were no immediate details on the timing of the sale. Cairn Energy's chief executive Simon Thomson last month said the British company was "actively re-balancing its portfolio to deliver exploration-led growth". The latest sale plans come after Cairn Energy in June sold a 3.5 percent stake in Cairn India for around $360 million.
Cairn Energy struck oil under the Rajasthani desert in 2004. It had in the lead-up to winning Indian government approval for selling 40 percent of its stake in Cairn India to Vedanta insisted it would retain a 22 percent holding in the Indian company to give it "the strength and flexibility to explore new opportunities for delivering transformational growth".
Comments
Comments are closed.