SALMAR WITHDRAWS PURCHASE OF INCREASED LICENSE CAPACITY DUE TO NORWEGIAN PROPOSED TAX HIKE

SalMar withdraws purchase of increased license capacity due to Norwegian proposed tax hike. SalMar has terminated the purchase of increased license capacity (1,223 MAB tonnes for a total consideration of NOK 244.6 million) due to proposed Norwegian tax grab.

A statement said:

“This is due to the resource rent tax the Government has now announced. The proposals involve, among other things, that the state acquires 40 per cent of all cash flows in the company, and that the other owners’ share is correspondingly reduced. This is expressed by the total tax for aquaculture companies in Norway increasing from 22 to 62 per cent. If the proposals were to be adopted, there would be major consequences for the company’s investment decisions and capital allocation going forward.

“This has created a situation which means that the company does not find it justifiable to pay the aforementioned remuneration. The government’s surprising proposal, without waiting for the recommendation from the government-appointed tax committee, has also led to an unpredictability on the part of the authorities which reinforces the need for a closer evaluation of the company’s future investment strategies.”

Meanwhile, SalMar’s CFO, Gunnar Nielsen, has notified the company that he resigns from his position. Nielsen has been with SalMar since April 2022.

SalMar has with regret accepted Nielsens decision and will promptly start the process of recruiting his replacement. Nielsen will stay with the company until the end of 2022.

“SalMar wishes to thank Nielsen for his efforts and valuable contributions as part of the top management during the period he has been in the company,” says CEO Linda Litlekalsøy Aase.

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