23rd Nov 2006 07:01
Cairn Energy PLC23 November 2006 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, OR INTO, THE UNITED STATES,CANADA, AUSTRALIA OR JAPAN EMBARGOED FOR RELEASE AT 0700 23 November 2006 CAIRN ENERGY PLC US$ 822 million pre-flotation private placing of Cairn India shares Cairn Energy PLC (the "Company" or "Cairn") announces that another key milestonehas been reached in connection with the preparations for the flotation of itsIndian business, Cairn India Limited ("Cairn India"), on the Bombay StockExchange Limited ("BSE") and National Stock Exchange of India Limited ("NSE"). The pre-flotation private placing (the "placing") closed on Wednesday 22November 2006 and 209.67 million Cairn India shares have been placed at a priceof Rs 176.48 per share, raising a total of Rs 37.0 billion (US$ 822.47million*). If the flotation price per share is lower than Rs 176.48, theplacing price will be reduced accordingly. The placing is equivalent to 11.88 per cent. of the issued share capital ofCairn India and, at the placing price, implies a Cairn India marketcapitalisation of approximately Rs 311.54 billion (or approximately US$ 6.92billion*) following successful completion of the flotation and excluding anyexercise of the over-allotment option. The consequent implied valuation for theCompany's current interest in Cairn India is US$ 6.32 billion after taking into account the proportion of the gross proceeds to be retained by Cairn India(expected to be approximately US$ 600 million). The placing is conditional upon, inter alia, the allotment of shares in theflotation occurring prior to 10 February 2007. Preparations remain on track tocomplete the flotation in December 2006. The largest investor in the placing is a wholly owned subsidiary of PetroliamNasional Berhad (PETRONAS), which has subscribed for 176.53 million shares(representing approximately 10% of the post-flotation share capital). Thebalance of 33.14 million shares are being subscribed for by a combination ofIndian and international institutional investors. As a result of the placing the net offer to the public of shares in Cairn India will be reduced from 538.47 million shares to 328.80 million shares. Merrill Lynch and ABN AMRO Rothschild have acted as joint co-ordinators in relation to the placing. Sir Bill Gammell, Chief Executive of Cairn Energy PLC, commented:- "We are delighted to have gained such substantial backing for our pre-flotationplacing. The positive response confirms our belief that this is the beststrategy for Cairn to develop and grow our world class business in India." * Based on a US dollar to Rupee exchange rate of 1:44.99 (source: FinancialTimes closing mid rate of exchange on 21 November 2006). Enquiries to:Analysts/InvestorsBill Gammell Chief Executive Tel: 0778 555 7310Jann Brown Finance Director Tel: 0776 823 6289Mike Watts Exploration Director Tel: 0776 863 1328 Media Tel: 0131 475 3000David 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 Draft Red Herring Prospectus with the Securities andExchange Board of India. This announcement is not an offer for sale, or asolicitation of offers to purchase, the shares in Cairn India to be offered inthe offering (the "Shares") in any jurisdiction. No action will be taken topermit the Shares to 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 theEuropean Economic Area or in the United States. The Shares have not been andwill not be registered under the US Securities Act of 1933, as amended. Thisannouncement and the information contained herein are not for publication,distribution or release in, or into, the United States, Canada, Australia orJapan. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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