27th Nov 2006 08:31
Cairn Energy PLC27 November 2006 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, OR INTO, THE UNITED STATES,CANADA, AUSTRALIA OR JAPAN FOR IMMEDIATE RELEASE 27 November 2006 CAIRN ENERGY PLC Flotation Price Range and Filing of Cairn India Limited's Red Herring Prospectus Cairn Energy PLC ("Cairn") announces that, in preparation for the flotation ofits Indian business on the Bombay Stock Exchange Limited and the National StockExchange of India Limited, its Indian subsidiary, Cairn India Limited ("CairnIndia") expects to file shortly with The Registrar of Companies in Maharashtra,India, an offering document (the "Red Herring Prospectus") in relation to theproposed flotation, in accordance with regulatory requirements. In line with regulatory requirements and market practice in India, the RedHerring Prospectus includes a price range. Cairn has agreed and Cairn India hasset a price range of Rs 160 - Rs 190 per Cairn India share. This implies a CairnIndia market capitalisation of approximately Rs 282.45 billion - Rs 335.41billion (or approximately US$ 6.32 billion - US$7.50 billion*) excluding anyexercise of an over-allotment option. The consequent implied valuation forCairn's current interest in Cairn India is US$5.72 billion at the bottom of therange and US$6.90 billion at the top of the range, in each case after takinginto account the proportion of the gross proceeds to be retained by Cairn India(expected to be approximately US$ 600 million). The flotation will involve the issue of approximately 538.47 million Cairn Indiashares, excluding any exercise of the over-allotment option. Approximately209.67 million Cairn India shares have been placed in the pre-flotation private placing announced by Cairn on 23 November 2006 resulting in a net offer to thepublic of approximately 328.80 million Cairn India shares. Cairn India mayalso grant an over-allotment option in accordance with The Securities Exchange Board of India guidelines. Cairn will own a 69.5% holding in Cairn Indiafollowing the flotation (excluding any exercise of the over-allotment option). Based on the price range above, illustrative gross proceeds of the flotation(including the proceeds of the pre-IPO private placing but excluding anyexercise of the over-allotment option) would be Rs 86.16 billion (US$ 1.93billion*) at the bottom of the range and Rs 99.47 billion (US$ 2.23 billion*)at the top of the range. After taking into account the proportion of the grossproceeds to be retained by Cairn India, expected to be approximately Rs 26.82billion (US$ 600 million*), the gross proceeds expected to be received by Cairn(excluding any exercise of the over-allotment option) would be approximately Rs59.34 billion (US$ 1.33 billion*) at the bottom of the range and Rs 72.65billion (US$ 1.63 billion*) at the top of the range. The final offer price for the flotation will be determined following a bookbuilding exercise expected to complete in mid December 2006. A furtherannouncement confirming the final offer price will be made as soon as possiblethereafter. ABN AMRO Rothschild, Merrill Lynch and Morgan Stanley are acting as book runninglead managers in relation to the initial public offering. *(Based on a US dollar to Rupee exchange rate of 1:44.70 (source: FinancialTimes closing mid rate of exchange on 24 November 2006) Sir Bill Gammell, Chief Executive of Cairn Energy PLC, commented: "Following last week's successful private placing we are now commencing the nextstage of the proposed flotation of the Cairn India business. The price range forthe flotation reflects not only the current Cairn share price, but also ourbelief in the long term potential value of the Indian business which we have nowseen positively supported by our private placing." 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 to be offered in the offering(the "Shares") in any jurisdiction. No action will be taken to permit the Sharesto be sold in a public offer in any jurisdiction outside India. In particular,no offer 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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