British oil and gas company Cairn Energy Plc today announced that it will initiate a buyback of shares following the receipt of Indian tax refund.
Announcing its plans for a buyback, Cairn said it will start an initial share repurchase programme of its ordinary shares of 21/13 pence each of up to £20,000,000..
“This programme is being initiated prior to the anticipated larger buyback programme to commence following receipt of the Indian tax refund,” Cairn said in a statement.
Cairn has entered into non-discretionary arrangements with Morgan Stanley in relation to the purchase by Morgan Stanley, acting as principal during the period commencing on 15 November, 2021 till 31 January 2022, of ordinary shares in the share capital of the company for an aggregate purchase price of no greater than £20,000,000 and the on-sale of such Shares by Morgan Stanley to Cairn.
Any purchases of ordinary shares contemplated by this announcement will be effected within certain pre-set parameters and will be executed in accordance with the relevant regulations and Cairn’s general authority to make market purchases of shares, the company said in a statement.
Cairn said it will announce any market repurchase of ordinary shares on the business day following the calendar day on which the repurchase occurred.
Cairn has recently said it has entered into a deal with India to settle its long-running tax dispute that will see India refund $1.06 billion in return for the British oil and gas explorer dropping all legal proceedings against the country.
The settlement will allow Cairn to pay shareholders a special dividend by early 2022, the company said.
It is under the Taxation Laws (Amendment) Act, introduced this year to put an end to 17 tax disputes India has with multinational companies like Cairn and Vodafone Plc.
Last December, an arbitral tribunal granted an award in favour of Cairn asking India to pay $1.23 billion plus interest and $22.38 million toward arbitration and legal costs.
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