Cairn Energy to buy more assets in India from IPO proceeds

Vishakapatnam/Mumbai, Nov 15 (UNI) Cairn India Ltd (CIL), a Indian subsidiary of Cairn Energy, UK will spend a major portion of its proposed US$ 1.9 billion Initial Public Offering(IPO) in December on the acquisition of assets and development of infrastructure in the country.

Interacting with the scribes of Mumbai on a visit to the onshore platform adjacent to the Ravva oil and gas field in Vishakapatnam, Mr Richard Heaton, Cairn's Director-Exploration said that a major portion of the IPO would be used to fund its ongoing business in Rajasthan.

Echoing on similar lines, Mr David Nishbet, Cairn's Director - Group Communications, said,''focus would be on buying more and more assets in India.'' In this context, he pointed out Cairn India has already invested more than US$ 500 million to date in Rajasthan in risk capital.

That apart, Mr Nishbet said Cairn has committed a further US$ One billion of funding for the first phase of the Rajasthan development and another US$ One billion has been earmarked for future investment in Rajasthan. In that sense, he remarked that the growth plans of Cairn in India far exceeds that of the IPO it has planned in December.

The IPO of Cairn India envisages sale of 538.47 million shares through the book-building process. Post-IPO, Cairn Energy's stake in India subsidiary would be 69.5 per cent.

Cairn Energy plans to split its business into two - Cairn India (which would hold the company's India interests including Rajasthan oilfield, Cambay oil and gas fields and Ravva oil and gas field) and yet unnamed exploration company with interests in exploration assets in Bangladesh, Nepal and adjoining parts of India.

Meanwhile, Cairn Energy plans to hold an extraordinary shareholders meeting on November 17 to vote on the planned flotation.

MORE UNI SN PM SKB1827