Cairn Energy confident of securing Indian dividend payments

Cairn Energy news
Cairn Energy news

Cairn Energy said today that it is confident of forcing through dividend payments totalling $104million it claims to be owed by Vedanta Limited.

Edinburgh-headquartered Cairn is also seeking damages of $1billion to be awarded under the UK-India Bilateral Investment Treaty.

The hearings for the tribunal are slated to take place in The Hague in January.

An international tribunal has ruled that Cairn is due dividends of $53million from Cairn India, a former subsidiary which was acquired by Vedanta.

A further dividend of $51million is owned following the merger.

Cairn said in a statement: “International arbitration proceedings are progressing in respect of the Group’s claim under the UK-India Bilateral Investment Treaty.

“Cairn is seeking full restitution for treaty breaches resulting from the expropriation of its investments in India in 2014, the attempts to enforce retrospective tax measures and the failure to treat the company and its investments fairly and equitably.

“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 at the time it was attached (approximately US$1 billion).

“The seat of the arbitration is The Hague in the Netherlands and final hearings for the tribunal are scheduled for January 2018.”