LONDON, July 12, 2011 (AFP) – British oil explorer Cairn Energy on Tuesday announced that it had sold 10 percent of its Indian unit to Vedanta Resources for a net cash sum of $1.362 billion (978 million euros). India had last month given conditional clearance to the sale of Cairn Energy’s Indian oilfields to mining group Vedanta.
In a statement issued on Tuesday, Cairn said it “completed the sale of… 10 percent of the fully diluted share capital in Cairn India,” adding that it planned to offload a further 30 percent to Vedanta subject to “approvals from the Government of India.”
Following the sale of the 10-percent stake on Monday, Cairn remains the majority shareholder of Cairn India with a 52.2 percent shareholding. Vedanta now owns 28.5 percent of Cairn India.
Cairn had agreed to sell a 40-percent stake in Cairn India to Vedanta nearly a year ago, but the deal had become bogged down in a dispute over royalties.