Cairn Energy.

Investors Chronicle, March, 2007

Cairn Energy will return GBP481m to shareholders from the Indian flotation of new subsidiary Cairn India - the amount is in line with analyst expectations, but earlier than expected. The cash return will be structured as a B-share issue equivalent to GBP3 per share, and a 13-for-16 consolidation of existing shares to maintain market price post-payout.

Even before factoring in the reduction in the company's market value, with a market value of just GBP2.5bn, Cairn is set to be relegated from the FTSE 100 to the FTSE 250 index at the forthcoming FTSE International quarterly index review on Wednesday 7 March.

Cairn shares are already oversold on concerns over pipeline construction for its flagship Rajasthan assets, especially as the Indian share price...

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