RNS Number : 0023G
Cairn Energy PLC
05 May 2011
FOR IMMEDIATE RELEASE 5 May 2011
CAIRN ENERGY PLC ("Cairn")
Proposed part sale of shareholding in Cairn India Limited ("Cairn India")
to Vedanta Resources plc ("Vedanta" and the "Transaction")
Result of Vedanta's Open Offer
Cairn has been notified by Vedanta of the results of the Open Offer for Cairn India shares by Sesa Goa Limited (a subsidiary of Vedanta), which closed on 30 April 2011. A total of approximately 155 million Cairn India shares, representing 8.1 per cent of the share capital, have been tendered*.
Following the acquisition of both the 10.4 percent stake from PETRONAS International Corporation Limited announced on 19 April 2011 and the Open Offer shares, Sesa Goa Limited will hold 18.5 per cent of the share capital of Cairn India.
Cairn and Vedanta have agreed that, for the purposes of the formula set out in the Share Purchase Deed entered into in August 2010; these shares will all be treated as if they had been acquired in the Open Offer. Accordingly, on completion of the Transaction, Cairn will sell a stake in Cairn India to Vedanta equivalent to 40 per cent of the share capital, following which Cairn will hold a residual interest of 21.7 per cent of the share capital.
*All figures are quoted on a fully diluted basis
Cairn Energy PLC
Sir Bill Gammell, Chief Executive
Simon Thomson, Commercial and Legal Director
Jann Brown, Finance Director
David Nisbet, Corporate Affairs
Tel: 0131 475 3000
Brunswick Group LLP
Tel: 0207 404 5959
NOTES TO EDITORS:
Cairn Energy PLC
Ø Cairn Energy PLC ("Cairn") is an Edinburgh-based oil and gas exploration and production company listed on the London Stock Exchange.
Ø Following the IPO of Cairn India in January 2007, there are two separate arms to the Cairn business:
o Cairn India limited ("Cairn India") is listed on the Bombay Stock Exchange and the National Stock Exchange of India and has interests in a total of 11 acreage blocks in India and Sri Lanka. Cairn currently retains a 62.2% interest in Cairn India (on an un-diluted basis). Following completion of the Transaction Cairn will hold a 21.9% interest in Cairn India (on an undiluted basis).
o Capricorn Oil Limited ("Capricorn"), a 100% subsidiary of Cairn, is focused on exploration. Capricorn has assets in Nepal, Greenland, Albania and Spain.
Ø "Cairn" where referred to in this release means Cairn Energy PLC and/or its subsidiaries (including Cairn India and Capricorn), as appropriate.
Ø "Cairn India" where referred to in the release means Cairn India Limited and/or its subsidiaries, as appropriate.
Ø The number of Cairn India shares to be sold under the Sale and Purchase Deed is equal to 51% of the fully diluted share capital minus the number of shares acquired under the open offer, with a floor of 40%.
Ø Cairn has previously focused its activities on the geographic region of South Asia, resulting in a significant number of oil and gas discoveries. In particular, Cairn made a major oil discovery (Mangala) in Rajasthan in the north west of India at the beginning of 2004. Cairn has now made more than 20 discoveries in Rajasthan block RJ-ON-90/1.
Ø Cairn India is headquartered in Gurgaon on the outskirts of Delhi, with operational offices in Chennai, Gujarat, Andhra Pradesh and Rajasthan.
For further information on Cairn please go to: www.cairnenergy.com
This information is provided by RNS
The company news service from the London Stock Exchange