Cairn UK to offload 8%-stake in Indian arm for $940 mn

Cairn UK will sell 15.3 crore shares in Cairn India, worth USD 940 million, at Rs 317.90-328.30 per share, reports CNBC-TV18's Nimesh Shah.

This is a very large block deal that will be executed on Tuesday. Citi Group is the sole book-runner for this entire block deal. Cairn UK will sell a little over 8-percent stake or 15.2 crore shares to institutional investors.
The book has already been launched. The price band to this book is Rs 317-328 which mean a discount of 5-7 percent. At the higher end, Cairn UK will earn close to USD 940 million via this block deal.
Even after this block deal of 8 percent, Cairn UK will continue to hold close to a 10- percent stake in Cairn India.