Cairn Energy changes its name to Capricorn Energy

New Delhi: UK oil and gas explorer Cairn Energy Plc will change its company name to Capricorn Energy Plc from mid-December when its over USD 1 billion tax dispute is set to close.

Cairn Energy, which gave India its biggest onland oil discovery, sold its India unit, Cairn India, in 2011 to mining tycoon Anil Agarwal’s Vedanta Group. The sale included transfer of the Cairn brand name to Vedanta.

But both the UK firm and Vedanta continued to use the name – while Cairn Energy did not change its name, the mining conglomerate continued with Cairn India Ltd until 2018, when the firm merged with Mumbai-listed Vedanta Ltd. Since then, the oil and gas exploration and production operations of Vedanta Limited are organized as Cairn Oil & Gas.
“It plans to change the name of its company from Cairn Energy plc to Capricorn Energy plc with effect from December 31, 2021. The LSE stock ticker will remain as CNE,” Cairn Energy Plc said in a statement.

That said, it follows an agreement at the time of Cairn India’s IPO in 2006 that the name would eventually be changed.

After the name change, the Cairn brand is exclusively owned by Vedanta. “In view of the recent legislative changes in India and our participation in the relevant tax refund process, we are now planning to change the name,” it added.

On November 3, the company had said that it has agreed to drop all litigation against the Indian government in return for a refund of Rs 7,900 crore of retrospectively claimed taxes.

Seeking to repair India’s damaged reputation as an investment destination, the government in August filed outstanding claims against telecom conglomerate Vodafone, pharma firm Sanofi and brewing subsidiaries, now owned by AB InBev and Cairn. Created a new law to release Rs 1.1 lakh crore. .

Around Rs 8,100 crore collected from companies under the repealed tax provision is to be refunded if the companies agree to drop the outstanding litigation including interest and penalty claims. Of this, Rs 7,900 crore is due only to Cairn.

Subsequently, the government notified rules last month that when complied with, the government would withdraw tax demands raised using the 2012 retrospective tax law and that any tax collected in enforcement of such demand would be paid .

For this, the companies will have to pay damages to the Government of India against future claims and withdraw any pending legal proceedings.

Cairn said it has given the requisite commitment and has agreed to drop lawsuits launched a few months ago to confiscate Indian assets in countries ranging from France to the UK, when the Indian government sought an international arbitration award. refused to honor and refund it retro tax. Pennies.

The government will now have to accept this and issue a so-called Form-II to Cairn which will commit to refund the tax collected to implement the tax demand from the retrospective date. After the issuance of Form-2, Cairn will withdraw the legal proceedings and will get a refund of Rs 7,900 crore.

Cairn said that if the Principal Commissioner of Income Tax either disallows the undertaking given in Form No. 1 under Rule 11UE(1) or denies the intimation of withdrawal given under Rule 11UF(3), its The undertaking will never be submitted. Refused to give refund.

Only after the refund is issued, the new law will be seen working in the eyes of foreign investors.

“The new name reflects continuity and growth: most of Cairn’s subsidiaries have been known as Capricorn for some time. It is an established and respected name in our global operations, thanks to our longstanding appreciation for responsibility, relationships and respect. Maintains stakeholder confidence in reputation,” the statement said. Read also: Amitabh Bachchan’s exclusive NFT collection auctioned for over Rs 7 crore

It states that no action is required on the part of the shareholders regarding the change. Read also: Elon Musk’s Starlink to collaborate with Indian telcos for broadband service

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