Taking action after tax shock.
Earlier this year, SalMar bought its relative share available for a fixed price for the capacity adjustment in the traffic light system. 1,223 MTB (maximum permitted biomass) tonnes for a total consideration of NOK 244.6 million (€24.5 million). After the Norwegian government’s announcement, SalMar has chosen to terminate the purchase.
“This is due to the resource rent tax that the government has now announced. The proposals entail, among other things, that the state acquires 40 percent of all cash flows in the company, and that the other owners’ share is correspondingly reduced. This is expressed in the fact that the total tax for aquaculture companies in Norway increases from 22 to 62 percent. If the proposals were to be adopted, there would be major consequences for the company’s investment decisions and capital allocation going forward,” SalMar announced in a statement.
“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,” SalMar wrote.
On Wednesday, in the wake of the government’s presentation of a proposal for resource rent tax for aquaculture, SalMar had 30 percent of the company’s market value erased on the Oslo stock exchange.