Cairn India Limited Board Proposes Buyback of Equity Shares Business Wire DELHI, India -- November 28, 2013 Cairn India Limited ("CIL" or "Company"), a subsidiary of Sesa Sterlite Limited, announces the proposal for Buyback of its Equity Shares. The Board of Directors of the Company in its meeting held on 26 November, 2013 has approved a proposal for the Buyback of Equity Shares of the Company from its existing shareholders, other than the Company's promoters, promoter group, persons in control and persons acting in concert. The Buyback would be done from the open market through the Stock Exchanges, at a price not exceeding Rs. 335 per Equity Share, up to an aggregate amount not exceeding Rs. 5,725 crores. The maximum Buyback price represents over 4% premium compared to the average of the weekly high and low of the closing share price of the Company during the last two weeks. With the above mentioned limits of the proposed Buyback, the Indicative maximum number of Equity Shares of Rs.10 each that can be bought back would be 170,895,522, resulting in the reduction of Equity Capital by approximately 8.9%. The Buyback comes on the backdrop of strong cash flows generated by the Company through its operational excellence and the World class asset base. The Company is currently producing over 213,000 boepd and is on track to meet year-end target of over 225,000 barrels of oil equivalent per day from all producing assets. This proposal is a shareholder reward mechanism through decrease in the equity share capital and a consequent increase in the Earnings per Share of the Company. The Company believes that the Buyback will improve shareholder returns while maintaining the current dividend payout ratio as per the approved policy. The proposed Buyback is subject to approval of the shareholders of the Company and other regulatory approvals, as may be required. The Company will be seeking approval of the shareholders of the Company by way of a special resolution to be passed through postal ballot as per applicable provisions of the Companies Act, the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 1998 and other applicable provisions. Post receipt of approval of the shareholders and such other sanctions and approvals as may be required the Company is expected to initiate the Buyback process in January, 2014. Mr. Sudhir Mathur, CFO, Cairn India said: “We are happy to announce yet another shareholder reward mechanism in addition to the interim dividend declared last month. This comes on the back of strong operational excellence and robust financials. The company continues to work on its US$ 3 billion capex program over next three years till FY16 and is well placed to develop its current asset base and monetize the existing exploration opportunities with the objective of strengthening its E&P portfolio.” Disclaimer This material contains forward-looking statements regarding Cairn India and its affiliates, our corporate plans, future financial condition, future results of operations, future business plans and strategies. All such forward- looking statements are based on our management's assumptions and beliefs in the light of information available to them at this time. These forward-looking statements are by their nature subject to significant risks and uncertainties; and actual results, performance and achievements may be materially different from those expressed in such statements. Factors that may cause actual results, performance or achievements to differ from expectations include, but are not limited to, regulatory changes, future levels of industry product supply, demand and pricing, weather and weather related impacts, wars and acts of terrorism, development and use of technology, acts of competitors and other changes to business conditions. Cairn India undertakes no obligation to revise any such forward-looking statements to reflect any changes in Cairn India's expectations with regard thereto or any change in circumstances or events after the date hereof. Unless otherwise stated the reserves and resource numbers within this document represent the views of Cairn India and do not represent the views of any other party, including the Government of India, the Directorate General of Hydrocarbons or any of Cairn India’s joint venture partner. Contact: Cairn India Limited Investor Relations Nidhi Aggarwal, +91 124 476 4308 Head - Investor Relations firstname.lastname@example.org Mobile: +91 98101 97755 Media Relations Dr Sunil Bharati, +91 124 459 3138 Head, Corporate Affairs & Communications email@example.com firstname.lastname@example.org Mobile: +91 99104 86055
Cairn India Limited Board Proposes Buyback of Equity Shares
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