Cairn Energy says will start buyback with $1 bn tax refund from Indian Govt

Cairn Energy Plc today announced that it would use proceeds of $1 billion tax refund from the Indian government to initiate a buyback of its shares at a later date.

It has also commenced an initial share repurchase programme of its ordinary shares up to £20 million as a prelude to the anticipated larger buyback programme to commence following receipt of the Indian tax refund, said the company in a press statement.

Cairn has entered into non-discretionary arrangements with Morgan Stanley & Co. International Plc in relation to the purchase by Morgan Stanley, acting as principal during the period commencing on 15 November 2021 and ending no later than January 31, 2022, of ordinary shares in the share capital of the company for an aggregate purchase price of no greater than £20 million and the on-sale of such shared 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. Cairn will announce any market repurchase of ordinary shares no later than 7:30 am on the business day following the calendar day on which the repurchase occurred. To the extent permitted by law, ordinary shares purchased under the current programme will be cancelled.