Ashurst and S&W scoop Cairn Energy share placing mandates

Ashurst and Shepherd & Wedderburn (S&W) have led the advice on Cairn Energy’s £116m share placing.

Edinburgh-based S&W finance partners Paul Hally and Stephen Trombala acted for Cairn Energy, an existing client of the firm.

Ashurst represented Merrill Lynch and RBS Hoare Govett in their capacity as joint bookrunners.

The Ashurst team was led by corporate partner Nick Williamson, assisted by US corporate partner Eric Stuart.

The placing of shares represents an increase of around 5 per cent in Cairn Energy’s existing share capital.

The company said the cash raised would help fund its oil field development in Rajasthan, India, which is due to come onstream later this year, as well as exploration in Greenland.

Chief executive Sir Bill Gammell said: “The funds raised from the placing, along with our current debt facilities and cash resources enable us to retain the financial and operational flexibility necessary for our next phase of growth.”

S&W also acted on Cairn Energy’s previous share issue, raising £102.9m in a secondary issue in 2006.

Ashurst was instructed in one of 2009’s largest capital raisings - William Hill’s £1.2bn rights issue and debt facility.

Ashurst corporate partner Anthony Clare advised the gambling group, while­Skadden Arps Slate Meagher & Flom capital markets partner James Healy acted for the underwriting banks on the cash call.