Cairn and Vedanta Transaction Completed
8 December, 2011
Cairn is pleased to announce that the Transaction has now completed. Net proceeds to Cairn from the sale of a 30 per cent shareholding in Cairn India were $4.1 billion in cash. In July 2011, Cairn completed the sale of a 10 per cent shareholding in Cairn India to Vedanta for net proceeds of approximately $1.4 billion in cash.
Following the Transaction, Cairn retains an approximate 22 per cent shareholding in Cairn India.
Cairn now proposes to return approximately $3.5 billion of the sale proceeds to shareholders. The return of cash is expected to be made in a manner that will provide shareholders with an element of choice as to when and in what form they receive the cash. A further announcement will be made in due course.
Simon Thomson, Chief Executive, Cairn Energy PLC said:
“I am delighted to announce completion of this transaction which represents a major milestone in Cairn’s history. It crystallises the very significant value creation that we have delivered from our Indian business and allows us to return around three and a half billion dollars to shareholders.
Our remaining 22% shareholding in Cairn India, retained cash and balance sheet strength provide financial flexibility and an excellent platform for future growth opportunities.”
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