The process of examining the possibilities of re-domiciling the parent company of Nordic Waterproofing to Sweden continues. Positive advance ruling received in Denmark.
As previously announced (PR 2019-12-10) the board of directors of Nordic Waterproofing Holding A/S ("Nordic Waterproofing") has decided to examine the possibilities of simplifying the legal structure by carrying out a re-domiciliation of the parent company from Denmark to Sweden. As part of this examination, Nordic Waterproofing has applied for a binding advance tax ruling in Denmark. The company has now received such an advance tax ruling stating that the suggested re-domiciling structure will not trigger any adverse Danish tax consequences. This is an important input into the examination process that now continues with further exploring the conditions and feasibility of a re-domiciliation.
Nordic Waterproofing's current structure, with a Danish parent company listed on Nasdaq Stockholm, is unusual and causes time-consuming and costly corporate governance, compliance, and fiscal administration processes, which would be simplified if the parent company and listed entity was domiciled in Sweden. Furthermore, the central group functions are located in Helsingborg and a vast majority of the company's shareholders are resident in Sweden.
On the basis hereof, the board of directors has previously decided to examine the possibilities of re-domiciling the parent company and listed entity to Sweden, and which model for implementation that is most appropriate. As a step in this process Nordic Waterproofing has asked the Danish tax authority for a binding advance tax ruling on whether a re-domiciliation through a down-stream cross-border merger with the direct Swedish subsidiary Nordic Waterproofing Group 1 AB, with the parent company merging into the subsidiary, would trigger any adverse Danish tax consequences. The Danish tax authority (Skatterådet) has now concluded that the suggested re-domiciling structure will not trigger adverse tax consequences in Denmark.
With this input from the Danish tax authority, the examination process now continues with further exploring the conditions and feasibility for re-domiciling the parent company of Nordic Waterproofing. No final decision on the implementation of the re-domiciliation of the parent company has been made and the implementation is subject to, inter alia, approval from the shareholders. Assuming continued investigations show conditions are favorable for a re-domiciliation, the re-domiciliation of the parent company can earliest be executed in late 2020 or in early 2021. Following the possible re-domiciliation, the Nordic Waterproofing group will continue to be traded on Nasdaq Stockholm, the group's operations will be unchanged and no employees are expected to be affected.
This information is information that Nordic Waterproofing Holding A/S is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, at 26 June 2020, 8.45 a.m. CEST.
For further information, please contact:
Per-Olof Schrewelius, CFO and investor relations
Telephone: +46 707 82 79 58
Nordic Waterproofing is one of the leading providers in the waterproofing market in northern Europe. The Company provides high-quality products and solutions for waterproofing in Sweden, Finland, Denmark, Norway, Belgium, the Netherlands, Poland, the United Kingdom and Germany. Nordic Waterproofing also provides installation services through wholly-owned subsidiaries In Finland and through part-owned franchise companies in Denmark. The Company markets its products and solutions under more than ten brands, all with an extensive heritage, most of which are among the most established and well-recognized brands in waterproofing in their respective markets, such as Mataki, Trebolit, Phønix Tag Materialer, Kerabit, Nortett, SealEco, Distri Pond, SPT-Painting, Taasinge Elementer, RVT and Veg Tech. Nordic Waterproofing is listed in the Mid Cap segment on Nasdaq Stockholm with the stock ticker NWG.