Cairn sells 3.5 % stake in India unit for over Rs2,000 crore

UK's Cairn Energy  today sold 3.5 per cent of its 21.8-per cent stake in Cairn India for over Rs2,000 crore in an open market deal.

The company said in a press statement in New Delhi that Cairn Energy had sold 6.67 crore shares, or 3.5 per cent for about $360 million

Last year the Edinburgh-based Cairn Energy sold majority stake in its Indian unit to the London-based mining group Vedanta.

While awaiting government approval for selling 40 per cent of its stake in Cairn India to Vedanta, the Scotland based Cairn had said it would retain about 22 per cent interest in the company to give it "the strength and flexibility to explore new opportunities for delivering transformational growth."

But in less than a year from receiving all approvals, the company has decided to sell off all its shareholding in Cairn India and exit the country.

"At the General Meeting of the company held on May 17 2012, shareholders authorised the Board to dispose of all or part of Cairn's residual interest in Cairn India," the statement said.

Cairn Energy said it "has reached an agreement with Citi to complete an on-market sale of a total of 66,758,864 shares in Cairn India, representing approximately a 3.5 percent shareholding in Cairn India".

Following the sale, Cairn Energy retains an about 18.3 per cent shareholding in Cairn India.