CAIRN Energy is due to raise around $1 billion (£620 million) by selling down more of its holding in the successful Indian business it developed.
Edinburgh-based Cairn Energy has appointed Citigroup investment bank to sell an 8% holding in Cairn India for up to $940m, according to a source in India.
A spokesman for Cairn Energy declined to comment on the reported sale, which would leave the company with a 10.3% stake in a business that it used to control.
However, led by chief executive Simon Thomson, right, Cairn's directors have said they are ready to sell down the holding in the Indian business to raise funds to invest elsewhere.
Cairn Energy has bought North Sea-focused Agora Oil and Gas and Nautical Petroleum for a total of £700m in recent months as part of a plan to build a rebalanced portfolio.
The company returned to the North Sea sfter spending $1bn drilling off Greenland without making a commercial find.
Last December, Cairn raised $5.5bn by selling a controlling stake in Cairn India to Vedanta Resources and distributed $3.5bn to shareholders.
The sale left Cairn with a 22% stake in Cairn India, which controls the acreage in Rjasthan state on which the company made a series of bumper finds.
Cairn sold a 3.5% stake in Cairn India for $371m in June.
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