Wednesday, April 20, 2011

Petronas sells Cairn India stake for RM6.35bil

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) has sold its entire 14.9% stake in Cairn India Ltd for about US$2.1bil (about RM6.35bil).

Petronas said in a statement yesterday that it had sold all its 283.4 million shares in Cairn India held via Petronas International Corp Ltd.

“The transaction brings to a close a successful association as a shareholder with Cairn India since 2006,” the national oil company said.

Earlier, news wires reported that Petronas had disposed of its stake in three transactions on the Bombay Stock Exchange.

Cairn India, which explores and produces crude oil and natural gas in India, is the operator of the country’s largest oil field on land.

The company, listed in Mumbai, is controlled by Edinburgh-based Cairn Energy Plc, which is looking to sell 51% of Cairn India to mining billionaire Anil Agarwal’s UK-listed vehicle, Vedanta Resources Ltd.

Reuters reported that 283 million shares changed hands in block share market deals and that most of Cairn India’s shares were sold at 331 rupees (US$7.40) apiece.

According to data compiled by Bloomberg, a total of 277.27 million shares were traded at 331 rupees (US$7.41) apiece in two blocks of deals and 5.07 million shares changed hands at 335 rupees each.

Petronas might have sold its entire holding in the open market, Bloomberg reported, citing unidentified people.

The reports said there had been speculation that Petronas might not tender shares in an open offer where the price might be at a discount to the current market price and would rather go ahead and sell it in the open market.

The wire reports said the names of the buyers and sellers were not immediately disclosed.

Following Petronas’ disposal, a unit of Vedanta, Sesa Goa Ltd, bought 11% stake in Cairn India.

Petronas first ventured into Cairn India in September 2006 by purchasing a 10% stake for US$700mil before Cairn India was listed in January 2007.

It has spent about US$1.3bil in Cairn India to own a 14.9% stake, with its latest purchase of a 2.3% stake taking place in October 2009 for some US$240mil.

No comments:

Post a Comment