Cairn Energy share price drops on £560m Indian selloff

<p>Cairn Energy’s share price has slipped on news it will be selling a stake in its Indian operations.</p>

Cairn Energy's share price on the London Stock Exchange (LSE) has slipped today (September 25th) on news the company is selling off nearly half of its remaining stake in its Indian subsidiary.

The Edinburgh-headquartered organisation said it expected to raise some $910 million (£560 million) from the sale of its eight per cent interest in Cairn India, leaving it with a ten per cent stake in its operations on the subcontinent.

In the latter months of 2011, Cairn Energy sold off a 40 per cent stake in its Indian arm to Vedanta, leaving it with 21.8 per cent of the company and in July it announced the sale of a further $360 million in shares – or 3.5 per cent of the business.

Cairn Energy is currently 1.3 per cent lower on the LSE, sliding to a share price of 281.20p.

Find the latest spread betting strategies for the FTSE 100 at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.