Cairn Energy plans to reward shareholders upon settlement of tax dispute with India

Cairn Energy Plc is likely to return up to $700 million to shareholders via a special dividend if its retrospective tax dispute with India is settled soon.

Britain's Cairn Energy said on Tuesday it plans to return up to $700 million to shareholders via a special dividend and a share buyback this year, provided its lengthy dispute with India over certain tax claims is resolved in the near term. The oil and gas producer, which has major operations in the South Asian country, said it was considering entering into statutory undertakings with the Indian government over changes to a retrospective tax law that is at the heart of the row between them.