12th Oct 2006 12:00
Cairn Energy PLC12 October 2006 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, OR INTO, THE UNITED STATES,CANADA, AUSTRALIA OR JAPAN EMBARGOED FOR RELEASE AT 12:00 12 October 2006 CAIRN ENERGY PLC Filing of Cairn India Limited's Draft Red Herring Prospectus On 5 September 2006, Cairn Energy PLC (the "Company" or "Cairn") announced thatsignificant progress had been made in connection with the preparations for theflotation of its Indian business, Cairn India Limited ("Cairn India") on theBombay Stock Exchange Limited ("BSE") and National Stock Exchange of IndiaLimited ("NSE"). As stated in that announcement, preparations are on track forthe initial public offer in December 2006, assuming receipt of the requiredapprovals, satisfaction of the listing requirements in India and favourablemarket conditions. The Company announces that, as part of these preparations, Cairn India has todayfiled with the Securities and Exchange Board of India ("SEBI") a draft offeringdocument (the "Draft Red Herring Prospectus") in relation to the proposedflotation, in accordance with regulatory requirements. The Draft Red HerringProspectus will also be filed with the BSE and NSE today. In line with regulatory requirements and market practice in India, the Draft RedHerring Prospectus includes details concerning Cairn India and the offer of newshares in Cairn India, but does not include pricing information and otherinformation which has not yet been finalised. Cairn expects that the flotation will involve an offer of 538.47 million CairnIndia shares. Cairn India may also grant an over-allotment option in accordancewith SEBI guidelines. The Company will own a 69.5% holding in Cairn Indiafollowing the flotation (excluding any exercise of the over-allotment option). The offer price for the flotation will be determined following a book buildingexercise, based on an offering document which will include a price range (the"Red Herring Prospectus"). It is expected that the Red Herring Prospectus willbe filed with the Registrar of Companies, Mumbai in November 2006 after, andsubject to, the Extraordinary General Meeting ("EGM") of Cairn referred tobelow. Due to the potential significance to the Company of the proposed flotation theCompany will seek prior approval of its shareholders at an EGM. The Companyexpects to send a formal notice of the meeting and the resolutions to beproposed, together with a circular setting out details of Cairn India, itsbusiness and assets, the proposed flotation and the relationship post flotationbetween Cairn India and Cairn to Cairn's shareholders around the end of October2006 and to hold the EGM in November 2006. Further announcements confirming each of these events will be made, in eachcase, when appropriate. Enquiries to:Analysts/InvestorsBill Gammell Chief Executive Tel: 0131 475 3000Kevin Hart Finance DirectorMike Watts Exploration Director MediaDavid Nisbet, Head of Group Communications Brunswick Group LLP:Patrick Handley, Mark Antelme Tel: 0207 404 5959 This announcement is not an offer for sale, or a solicitation of offers topurchase, the shares in Cairn India to be offered in the offering (the "Shares")in any jurisdiction. No action will be taken to permit the Shares to be sold ina public offer in any jurisdiction outside India. In particular, no offer to thepublic will be made in any Member State of the European Economic Area or in theUnited States. The Shares have not been and will not be registered under the USSecurities Act of 1933, as amended. This announcement and the informationcontained herein are not for publication, distribution or release in, or into,the United States, Canada, Australia or Japan. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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