Some Cairn Energy Plc pavilion shareholders that include BlackRock, MFS, Franklin Templeton and Fidelity, have called on the Indian government to honor a settlement award and return $ 1.2 billion to the British oil company, said people familiar with the matter.
Cairn, which went on this day seven years ago with a retrospective tax assessment, is third-quarter with the world’s top investors with $ 529 billion MFS Investment Investment of US as the largest investor with 14.02 % bet. New York-based BlackRock is the second largest shareholder with a share of 12.19%. Other investors include Fidelity International, Franklin Templeton, Vanguard Group and Aberdeen Standard Investments, according to stock exchange data.
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Two people with experience of the development said the investors have written to the Indian government as well as the US and UK governments seeking adherence to the implementation of a tribunal at the Hague Permanent Arbitration Court. The three-member tribunal, in which a judge was appointed by India, unanimously last month ₹10,247 crore post-tax claim on Cairn Energy and called on the government to return the value of the shares it sold, share seized and refund taxes it stopped to enforce the tax.
Cairn is not a single promoter-led company but is owned by the world’s leading investors who are now trying to protect their interest, the people said.
It was not immediately known how many of Cairn’s 20 major shareholders, which own between 74.94%, have written to the US, UK and Indian government. Cairn declined to comment.