Scottish explorer Cairn Energy Plc has sought shareholders’ approval to sell its 9.65 per cent stake in Cairn India after restrictions imposed by the Income Tax Department are lifted.
The tax department had earlier this year restrained Cairn Energy from selling the stake over alleged tax evasion on Rs. 24,500 crore of capital gains made when it transferred its India assets to a new company, Cairn India, in 2006-07.
Cairn Energy had said in a regulatory filing after the annual general meeting on May 16, 2013, that shareholders had authorised the board to dispose of all or part of the company’s residual interest in Cairn India.
“As previously announced, Cairn has at present been restricted by the Indian Income-Tax Department from selling its shares in Cairn India,” it said.
“However, Cairn believes it is appropriate to retain the flexibility to realise shareholder value from its residual interest in Cairn India in the event that the selling restriction is removed and is therefore seeking to renew the Residual Interest Disposal Authority.”
Its AGM is scheduled to be held in Edinburgh on May 15.