$3.5 Billion Return of Cash to Shareholders

abarrelfullabarrelfull wrote on 10 Jan 2012 09:25
Tags: cairn deals india upstream vedanta

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On 8 December 2011 Cairn announced the proposed return of approximately $3.5 billion of cash to Shareholders following the completion of the disposal of a 40 per cent shareholding in Cairn India to Vedanta Resources plc (“Vedanta”) in two tranches (the “Sale”).

Further details of the proposed return of cash are set out in this announcement.

Cash Return – Highlights

  • Shareholders to receive £1.60 for each Existing Ordinary Share
  • Return to be implemented by way of a B share scheme with a view to providing UK tax resident shareholders with flexibility to elect to receive cash in the form of income or capital, or a combination of both
  • Shareholders in certain prohibited territories and Shareholders who fail to make an election will be deemed to have elected for the income option and will receive a single dividend of £1.60 per B share
  • One B share for every one Existing Ordinary Share held on the record date
  • 13 for 33 share consolidation to seek to maintain comparability of share price and earnings per share
  • General Meeting to approve the return on 30 January 2012

Simon Thomson, Chief Executive, Cairn Energy PLC said:

“Cairn has returned US$4.5 billion to shareholders in the last five years in line with the Company’s strategy of realising value from its successes.

Following the successful completion of the sale, shareholders will receive £1.60 per share and the remainder of the proceeds will be used to pursue other material growth opportunities with the aim of creating and realising further value for shareholders in the future.

We are seeking to effect the return of cash in a manner that gives shareholders the most flexibility in terms of how and when they receive their money.”

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