SHAREHOLDERS in Cairn Energy will expect to get an update on the delayed sale of the bulk of its Indian business at a general meeting, ahead of the completion deadline tomorrow.
The Edinburgh-based company will hold its annual meeting in the city today.
Investors will want to know whether Cairn Energy still expects to be able to complete the deal to sell 40% to 51% of Cairn India to Vedanta Resources for up to $8.5 billion, which was announced in August.
Cairn has said it will distribute much of the proceeds to shareholders, putting them in line for hefty windfalls.
It has spent nine months attempting to get the approval of the Indian Government for the deal, which was originally scheduled to lapse on April 15. On April 7 Cairn said the deadline had been extended to May 20.
However. the Indian government has yet to make a decision.
Cairn Energy’s state-owned partner, ONGC, wants the terms of production on the companies’ assets in India improved.
It currently pays 100% of the royalties on output from the giant finds Cairn India made in Rajasthan, although it only has a 30% stake in the relevant licence.
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