18th Dec 2006 07:00
Cairn Energy PLC16 December 2006 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, OR INTO, THE UNITED STATES,CANADA, AUSTRALIA OR JAPAN FOR IMMEDIATE RELEASE 16 December 2006 CAIRN ENERGY PLC Pricing of Cairn India Limited Flotation Cairn Energy PLC (the "Company" or "Cairn") announces the pricing for theflotation of its Indian business, Cairn India Limited ("Cairn India"), on theBombay Stock Exchange Limited ("BSE") and the National Stock Exchange of IndiaLimited ("NSE"). Following a book building exercise, based on an offering document (the "RedHerring Prospectus"), Cairn has agreed and Cairn India has set an offer pricefor the flotation of Rs 160 per Cairn India share. This implies a Cairn Indiamarket capitalisation (including approximately US$ 600 million of the grossproceeds to be retained by Cairn India) of approximately Rs 282.45 billion (orapproximately US$ 6.32 billion*) excluding any exercise of the over-allotmentoption. The flotation will involve the issue of approximately 538.47 million Cairn Indiashares, excluding any exercise of the over-allotment option, comprisingapproximately 209.67 million shares priced at Rs 160 per share pursuant to thepre-flotation placement, and approximately 328.80 million shares priced at Rs160 per share pursuant to the offer to the public (excluding any exercise of theover-allotment option). Following the flotation, Cairn will own a 69.5% holdingin Cairn India (excluding any exercise of the over-allotment option). Based on the price above, gross proceeds of the flotation (excluding anyexercise of the over-allotment option) would be Rs 86.16 billion (US$ 1.93billion*). After taking into account the proportion of the gross proceeds to beretained by Cairn India, expected to be approximately Rs 26.81 billion (US$ 600million*), the gross proceeds expected to be received by Cairn (excluding anyexercise of the over-allotment option) would be approximately Rs 59.35 billion(US$ 1.33 billion*). A final offering document (the "Prospectus") is expected to be published on 19 December 2006. Allotment of Cairn India shares is expected to take place on 29 December 2006 with trading of Cairn India shares expected to commence in early January 2007. Further announcements relating to the Prospectus, allotment and commencement of trading of Cairn India shares will be made in due course. ABN AMRO Rothschild and Merrill Lynch are acting as joint global coordinators and bookrunners and Morgan Stanley as bookrunner in relation to the flotation. *Based on a US dollar to Rupee exchange rate of 1:44.686 (source: FinancialTimes closing mid rate of exchange on 15 December 2006). Sir Bill Gammell, Chief Executive of Cairn Energy PLC, said: "I am delighted that Cairn has achieved this important milestone in theflotation of our Indian business. This has been one of the biggest IPOs carriedout in the Indian markets and is a natural evolution for Cairn, building on morethan ten years of success in South Asia. On completion of this transaction, Cairn India will be the largest independentexploration and production company listed in India. With an estimated nearfive-fold increase in production by the end of the decade combined with nearterm potential in Rajasthan, Cairn India is poised to play an integral part inmeeting India's growing energy demand. I firmly believe that, through the IPO, we have created a world-class businesswhich is ideally positioned to benefit from India's rapid economic growth." Enquiries to:Analysts/InvestorsBill Gammell Chief Executive Tel: 0131 475 3000Jann BrownFinance DirectorMike Watts Exploration Director MediaDavid Nisbet, Head of Group Communications Brunswick Group LLP:Patrick Handley, Mark Antelme Tel: 0207 404 5959 Cairn India Limited ("Cairn India") proposes to undertake a public issue inIndia and has filed a Red Herring Prospectus with the Securities and ExchangeBoard of India. This announcement is not an offer for sale, or a solicitationof offers to purchase, the shares in Cairn India offered in the offering (the"Shares") in any jurisdiction. No action will be taken to permit the Shares tobe sold in a public offer in any jurisdiction outside India. In particular, nooffer to the public will be made in any Member State of the European EconomicArea or in the United States. The Shares have not been and will not beregistered under the US Securities Act of 1933, as amended. This announcementand the information contained herein are not for publication, distribution orrelease 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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