UK's Cairn Energy sells 8 per cent stake in Cairn India for $910 mn

UK's Cairn Energy plc has sold 8 per cent stake in Cairn India for a net realisation of about $910 million, following which the former retains about 10 per cent shareholding in the latter now.

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

Subsequent to that, it has now sold a total of 152,629,500 shares in Cairn India.

"Cash proceeds from the sale are expected to be $910 million (after transaction costs)," the statement said.

"The proceeds will be used to fund Cairn's ongoing capital requirements, which include the development of discovered resources in the North Sea as well as Cairn's wider exploration led growth strategy," it added.

With PTI inputs