Allerød, 2014-03-25 14:56 CET (GLOBE NEWSWIRE) -- The Board of Directors of Matas A/S today resolved to withdraw the action against the Danish Ministry of Taxation regarding deductibility of transaction costs in fiscal years 2006-2009.
As described in the offering circular published by Matas A/S on 13 June 2013, the Danish tax authorities challenged the tax deductibility of transaction costs incurred in relation to the acquisition of the Group in 2007. On 12 September 2013, the Danish National Tax Tribunal upheld the decision of the Danish tax authorities that the claim set up by Matas A/S for deductibility of transaction costs could not be allowed.
In consultation with the company's advisers, it was decided to appeal the decision of the Danish National Tax Tribunal to the civil courts. However, following a ruling by the Danish Supreme Court in a corresponding case, it is deemed to be difficult to succeed in the appeal against the Danish Ministry of Taxation, and the appeal will therefore be withdrawn.
As a consequence thereof, DKK 43.7 million of extra taxes will be recognised in Q4 of the 2013/14 financial year ending 31 March 2014. This corresponds to the full amount previously paid of DKK 12.6 million in the 2012/13 financial year and DKK 31.1 million in the 2013/14 financial year. Accordingly, the withdrawal of the action will have no cash flow effect in Q4 2013/14. Matas A/S will have to bear the costs of the case, which are expected to be limited.
The expectation of Adjusted EBIT for 2013/14 to be in the range of DKK 540-560 million is not affected by the withdrawal of the action against the Danish Ministry of Taxation.
Matas A/S
