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

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

The company has also embarked on a share buyback program of its common stock of up to £20 million as a prelude to its expected larger buyback program that will kick off after receiving the Indian tax refund, the company said in a press statement.

Cairn has entered into non-discretionary agreements with Morgan Stanley & Co. International Plc in respect of the purchase by Morgan Stanley, acting as principal during the period commencing 15 November 2021 and ending not later than 31 January 2022, of ordinary shares in the share capital of the Company for an aggregate purchase price not exceeding £20 million and the resale of such shares by Morgan Stanley to Cairn.

All purchases of Ordinary Shares contemplated in this announcement will be made within certain predetermined parameters and will be conducted in accordance with relevant regulations. Cairn will announce any market redemption of ordinary shares no later than 7.30am on the business day following the calendar day on which the redemption has taken place. To the extent permitted by law, common stock purchased under the current program will be cancelled.