Cairn Energy (CNE.L) has signed certain agreements with India that would allow for the reimbursement of taxes under a long-running, billion-dollar dispute with India. This sent the British company’s shares almost 3% higher Wednesday.
This news comes just a month after the Indian oil and gas producer stated in September that it was looking at undertakings with the government of India after changes to the retrospective tax law that was at the core of the dispute.
Cairn, a London-listed company, stated that it would begin filing necessary documents and collaborate with New Delhi in order to speed up the refund of approximately 79 billion rupees ($1.06 trillion).
“Cairn will begin the filing of necessary documentation… intimating withdrawal, termination or discontinuance of various enforcement action,” the company stated in a statement.
Cairn stated that it expected to pay the special dividend in September by 2022. A share buyback and the dividend were contingent upon the resolution of the dispute.
India suggested that the retrospective 2012 tax law be scrapped in August and promised to refund Cairn and Vodafone (VOD.L.).
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