Cairn Energy PLC (LON:CNE) said it had a “high level of confidence” in its ability to claw back US$104mln of dividends owed by Vedanta Ltd as it confirmed it was also seeking damages of US$1bn from the company founded and chaired by the Indian entrepreneur Anil Agarwal.
Cairn is taking its fight to The Hague, in the Netherlands, where final hearings for the tribunal are scheduled for January.
The case stems from a messy tax dispute during which dividend payments were blocked from Cairn’s former subsidiary, Cairn India, which was eventually taken over by Vedanta.
Despite the dividend restrictions being lifted by the authorities, payments didn’t materialise.
Cairn estimates it is owed US$104mln. The claim to receive the cash is being made under the UK-India Bilateral Investment Treaty.
“Cairn has a high level of confidence in its case under the Treaty and, in addition to resolution of the retrospective tax dispute, its claim seeks damages equal to the value of the group's residual shareholding in CIL (Cairn India) at the time it was attached (approximately US$1bn),” the FTSE 250-listed oiler said.
In late afternoon trading, Cairn Energy shares were around 3.8%, or 7.1p lower at 180.5p.
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