Cairn Energy sells 3.5% stake in India unit

British explorer Cairn Energy has sold a further 3.5 percent stake in its former subsidiary Cairn India in a transaction valued at around $360 million, the company said in a statement on Friday.

Last year, Cairn Energy sold a majority stake in Cairn India to India-focused Vedanta Resources for $8.7 billion. With the latest sale, Cairn Energy now holds 18.3 percent in Cairn India.

Cairn said in the statement it reached an agreement to complete the sale of some 67 million shares in Cairn India "representing approximately a 3.5 percent shareholding".

"Cairn expects to receive from this disposal a cash consideration before transaction costs of approximately $360 million," the company said.

The sale came after Cairn Energy recently said its remaining shareholding in Cairn India was "an important investment asset from which further value can be realised at the appropriate time".

The funds raised will be used to finance the company's development strategy.

Cairn Energy, whose fortunes were transformed in recent years by exploration projects in India, has since turned its focus to offshore Greenland.

However, two drilling campaigns failed to locate commercial quantities of oil and gas in 2010 and 2011.

Earlier this month, Cairn Energy said it had agreed to purchase Nautical Petroleum, its second North Sea acquisition since April, as it sought to even out the risks from its so far unsuccessful Greenland fuel search.

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