Matas A/S withdraws action against the Danish Ministry of Taxation regarding the deductibility of transaction costs

Matas A/S
Company Announcement

Matas A/S withdraws action against the Danish Ministry of Taxation regarding
the deductibility of transaction costs

Announcement 40

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Taxation, and the appeal will therefore be withdrawn.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