17th May 2016 11:21
LONDON (Alliance News) - Empyrean Energy PLC said on Tuesday an Internal Revenue Service representative has been assigned to its withholding tax certificate application, adding that it still intends to proceed with a return to shareholders as soon as the US taxation situation can be confirmed.
This comes after Empyrean sold its Sugarloaf AMI business to Carrier Energy Partners II LLC for up to USD71.5 million in February, but had USD10.7 million of the purchase price, or 15%, retained in escrow for US withholding tax.
The purpose of the withholding tax certificate application is to have any surplus withholding tax released back to Empyrean, the company said, with this surplus arising because Empyrean has US net operating losses that can be used to offset its US tax payable.
Empyrean has since been waiting for a representative of the US government's Internal Revenue Service to be assigned to the certificate and said its US taxation agents are working with the representative to ensure all additional information is provided.
Empyrean added that it has converted USD17.0 million of the initial sale proceeds into around GBP12.0 million, following repayment of primary debt as well as other costs, and plans to complete a return to shareholders in pounds.
"The board will consider the most efficient manner in which to return these funds," Empyrean said.
Shares in Empyrean were down 0.5% at 6.22 pence on Tuesday.
By Hannah Boland; [email protected]; @Hannaheboland
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