Cairn takes full control of exploration subsidiary

30th Nov 2009 07:15

Oil and gas firm Cairn Energy is to make Capricorn a wholly owned subsidiary by buying out minority shareholder Dyas BV.Cairn is acquiring Dyas’s 9.99% stake in the exploration focused Capricorn for$95m, to be satisfied through a mixture of newly issued shares and cash.Cairn will also hand over 15% of the interests held by Capricorn in Tunisia and Albania to Dyas. Assuming the hand-over is cleared by the authorities, this will give Dyas a 15% interest in the Louza Permit and a 7.5% stake in the Nabeul Permit in Tunisia, and a 15% interest in Block Joni-5 in Albania.The deal recognises a change of plan as regards Capricorn, which Cairn no longer intends to demerge from the company.‘Given the materiality of our exploration position in Greenland to the group as a whole, there is no longer an intention to demerge Capricorn. Dyas have therefore agreed to exchange their holding in Capricorn for a holding in Cairn,’ said Sir Bill Gammell, chief executive of Cairn.