CAIRN India has confirmed plans to buy back shares worth about £570 million in a move that could allow its former parent company in Edinburgh to raise hundreds of millions of pounds, writes Mark Williamson.
The buy-back may allow Cairn Energy to sell much of its remaining 10% holding in the Indian business. Cairn India said its board had decided to seek investor approval to purchase up to 170 million of its shares on the Indian stock market. It will pay a maximum of 335 Rupees (3.32p) per share.
The purchase will allow mining conglomerate Vedanta Resources to strengthen its hold on the company. It acquired a controlling stake in Cairn India from Cairn Energy for $5.4 billion (£3.3bn) in 2011.
Cairn Energy said it would watch the buy back process with interest.
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