Cairn Energy to pay shareholders 481 mn pounds
Cairn Energy of UK will give its shareholders 481 million pounds (944 million dollars), about half of the Rs 8,616 crore it raised through the public float of its Indian unit in December.
By PTI |
NEW DELHI: Cairn Energy of UK will give its shareholders 481 million pounds (944 million dollars), about half of the Rs 8,616 crore it raised through the public float of its Indian unit in December.
Cairn Energy, which received Rs 5,935 crore (1.33 billion dollars) out of the public float, will pay its shareholders in UK three pounds per share, the company said in a release here.
Cairn Energy chief executive Bill Gammell said: "Following the successful flotation of Cairn India, the return of cash to shareholders has been a key priority and I am delighted to be announcing this earlier than was previously anticipated.
"Shareholders will receive 3.00 pounds per share and the remainder of the proceeds will currently be retained by the business with the aim of creating and realising further value for shareholders in the future."
Cairn Energy had raised Rs 8,616 crore by selling 538.5 million shares, comprising 209.7 million shares in the pre-flotation private placing and 328.8 million shares in the public issue.
Of these, Cairn India retained Rs 2,681 crore (600 million dollars) and the remaining Rs 5,935 crore gross proceeds were received the parent company in UK.
After the flotation, Cairn Energy holds 69.5 per cent stake in Cairn India.
"The company now proposes to return to shareholders approximately 481 million pounds of the cash realised from that flotation, representing a return of 3.00 pound for each Existing Ordinary Share held by Shareholders on March 23 2007," Cairn Energy said.
"The remainder of the proceeds will currently be retained to fund the Group's business, thereby providing financial flexibility to support the growth of Capricorn, with the aim of creating and realising further value for Shareholders in the future."
Cairn Energy will hold an EGM on March 22 for approval of returning money from IPO proceeds to its shareholders.
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