The Brazilian authorities have canceled the tax claim against Vard Holdings Limited following the company’s appeal, the company said.
The claim dates back to August 2014 and relates to the transfer pricing of goods and services delivered from the company’s Norwegian subsidiaries to Vard Niterói, and the tax treatment thereof.
The tax assessment has been dropped as the Brazilian authorities ruled that the original claim was without substance. This decision cannot be appealed any further and is thus definite, Vard added.
“No provision had been made for the tax claim as an unfavorable assessment was deemed to be highly unlikely. Hence, the decision does not have any material impact on the financial accounts of the company, ” Vard went on to say.
In a separate announcement, the shipbuilder informed that Fincantieri has bought 64,700 in the company, bringing its shares to a total of 938,519,210 representing approximately 79.54 percent of the total number of shares.
The move is part of Fincantieri new proposal to privatize Vard Holdings via a voluntary delisting from the Singapore Exchange Securities Trading Limited (SGX-ST).