Cairn Energy could be in line for a £600 million bonanza from the sale of the stake in its Indian business, according to a report .
It said Cairn India, the oil and gas unit of London-listed Vedanta Resources, was set to spend about $1 billion (£600m) to buy back shares, and the share purchase would include buying back Cairn Energy's 10.3% stake in the company.
Mining conglomerate Vedanta, controlled by billionaire Anil Agarwal, bought a controlling stake in Cairn India from Cairn Energy for $5.4 billion (£3.3bn) in 2011.
This year Cairn Energy declined to comment on talk Vedanta Resources might make a bid for the whole of the Edinburgh-based oil and gas firm, valued at £1.6bn.
The Hindustan Times said investment bankers had approached Vedanta with a series of proposals including one to buy Cairn Energy, allowing Vedanta to broaden its oil and gas interests to include the North Sea and Greenland. Cairn India has had a pivotal role in boosting revenue and production as Vedanta fought regulatory hurdles and mining restrictions in India.
Cairn Energy declined to comment on the latest reports, but a company observer said Cairn had not committed itself to holding the Indian stake long-term.
Cairn shares closed down 0.7p at 267.5p, around their level 12 months ago.
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