Cairn shareholders poised for $700m India payout
A long-running dispute in India is close to settlement
Cairn Energy, the Edinburgh-based oil and gas explorer, said it expects near term resolution to the India tax issue that will enable further shareholder returns and acceleration of strategy.
Up to $700m will be returned to shareholders via a special dividend and buyback.
The update on the long-running tax dispute with the Indian government comes after the New Delhi parliament voted to scrap a retrospective law.
The government presented a bill in the Lok Sabha lower house of parliament to withdraw all retrospective tax demands on Cairn and said it will refund the funds collected to enforce such levies.
Cairn’s claim against the Indian government stems from a 2012 law which was used two years later by the authorities to claim unpaid taxes from Cairn India’s 2006 corporate reorganisation.
Cairn pursued a legal action which led to an arbitration tribunal in December ruling in its favour.