Britain oil and gasoline explorer Cairn will change its firm identify from Cairn Power PLC to Capricorn Power PLC, efficient from 13 December 2021. The LSE inventory ticker will stay as CNE.
This will probably be across the time its over $1 billion retrospective tax dispute will probably be nearing closure and likewise follows an settlement on the time of the Cairn India IPO that the identify would in the end be modified.
Cairn Power, which gave India its largest onland oil discovery, had in 2011 offered the India unit, Cairn India to mining baron Anil Agarwal’s Vedanta Group. The sale included the switch of the Cairn model identify to Vedanta.
However each the UK companies and Vedanta stored utilizing the identify – whereas Cairn Power didn’t change its identify all this whereas, the mining group continued with Cairn India Ltd until 2018 when the agency was merged with Mumbai-listed Vedanta Ltd. Since then, the oil and gasoline exploration and manufacturing operations of Vedanta Ltd are organised as Cairn Oil & Gasoline.
Given the current legislative change in India and Cairn’s participation within the associated tax refund course of, the corporate stated it now setting up the deliberate identify change.
The brand new identify displays continuity and evolution, Cairn stated.
The vast majority of Cairn’s subsidiaries have been referred to as Capricorn for a while. It’s a longtime and revered identify throughout our world operations, sustaining stakeholder confidence in our long-standing status for duty, relationships and respect.
No motion from shareholders is required in relation to the change, the UK-based agency additional stated.
On November 3, the corporate had acknowledged that it has agreed to drop all litigations in opposition to the Indian authorities in trade for a ₹7,900 crore refund of taxes claimed retrospectively.
Searching for to restore India’s broken status as an funding vacation spot, the federal government in August enacted new laws to drop ₹1.1 lakh crore in excellent claims in opposition to multinationals resembling telecom group Vodafone, pharma agency Sanofi and brewer SABMiller, now owned by AB InBev, and Cairn.
About ₹8,100 crore collected from corporations underneath the scrapped tax provision are to be refunded if the companies agreed to drop excellent litigation, together with claims for curiosity and penalties. Of this, ₹7,900 crore is due solely to Cairn.
Subsequent to this, the federal government final month notified guidelines that when adhered to will result in the federal government withdrawing tax calls for raised utilizing the 2012 retrospective tax legislation and any tax collected within the enforcement of such demand is paid again.
For this, corporations are required to indemnify the Indian authorities in opposition to future claims and withdraw any pending authorized proceedings.
Cairn stated it has given the requisite endeavor and has agreed to drop litigations it had initiated a number of months again to grab Indian properties in nations starting from France to the UK after the Indian authorities refused to honour a global arbitration award and refund it the retro tax cash.
The federal government now has to just accept this and situation Cairn a so-called Kind-II that can commit it to refund the tax collected to implement the retrospective tax demand. Following the difficulty of Kind-II, Cairn will withdraw authorized proceedings and can get a refund of ₹7,900 crore.
Cairn stated its endeavor shall be handled as having by no means been furnished if the Principal Commissioner for Earnings Tax both rejects the endeavor given by it in Kind No.1 underneath rule 11UE (1) or the intimation of withdrawal given underneath rule 11UF(3) or declines to grant the refund.
Solely after the refund is issued, the brand new laws will probably be seen as working within the eyes of overseas buyers.
“The brand new identify displays continuity and evolution: the vast majority of Cairn’s subsidiaries have been referred to as Capricorn for a while. It’s a longtime and revered identify throughout our world operations, sustaining stakeholder confidence in our long-standing status for duty, relationships and respect,” the assertion stated.
This story has been printed from a wire company feed with out modifications to the textual content. Solely the headline has been modified.
Supply: Live Mint