Cairn Energy’s India Settlement to Bring Investors $700 Million

Cairn Energy Plc shareholders can expect a payback of as much as $700 million once the U.K. oil producer settles a long-running tax dispute with India.

Cairn said Tuesday it expects its feud with the Indian government to be resolved in the “near term,” allowing the company to distribute a special dividend and buy back shares. A settlement would bring to an end a multiyear battle, during which Cairn initiated proceedings in numerous locations globally to enforce an arbitration ruling in its favor.

The total payment from India should be around $1.06 billion, Cairn said in a statement. After ...