CARGOTEC CORPORATION, PRESS RELEASE, 01 OCTOBER 2024 AT 09:00 AM (EEST)
Finnish Tax Administration published guidelines regarding the determination of the acquisition cost of Cargotec Corporation and Kalmar Corporation shares for Finnish income tax purposes
The completion of the partial demerger of Cargotec Corporation was registered on 30 June 2024. In the partial demerger, the Kalmar business transferred to Kalmar Corporation which was incorporated as a result of the partial demerger of Cargotec Corporation. Trading in the Kalmar class B shares on the official list of Nasdaq Helsinki commenced on 1 July 2024.
Upon the completion of the partial demerger, the shareholders of Cargotec Corporation received as demerger consideration one (1) new share of the corresponding share class (i.e., class A or class B) in Kalmar Corporation for each class A and class B share owned in Cargotec Corporation.
Following the partial demerger, the original acquisition cost of Cargotec Corporation share is split between Cargotec Corporation and Kalmar Corporation shares in Finnish income taxation. The acquisition cost varies depending on the price and original date of acquisition of the share. The determination of the acquisition cost is necessary for taxation purposes to calculate the capital gain or loss received from the disposal of shares.
The Finnish Tax Administration published guidelines on 27 September 2024, regarding the determination of the acquisition cost of Cargotec Corporation and Kalmar Corporation shares for Finnish income tax purposes. The guidelines confirm that the ratio of net assets remaining with Cargotec Corporation and transferred to Kalmar Corporation is used as the basis for calculating the acquisition costs of the shares. The net assets of Cargotec Corporation have been allocated in such way that Kalmar Corporation has received approximately 32.44% of the net assets and approximately 67.56% of the net assets have remained with Cargotec Corporation. Therefore, in accordance with the Finnish Tax Administration's guidelines, the acquisition cost of Cargotec Corporation share is 67.56% of the original acquisition cost of Cargotec Corporation share prior to the partial demerger. Consequently, the acquisition cost of Kalmar Corporation share is 32.44% of the original acquisition cost of Cargotec Corporation share prior to the partial demerger.
Example: If the original acquisition price paid by a shareholder for a Cargotec Corporation share was EUR 60.00 prior to the demerger, the acquisition cost of Cargotec Corporation share would be EUR 40.54, and the acquisition cost of Kalmar Corporation share would be EUR 19.46.
The Finnish Tax Administration's guidelines are available on the Finnish Tax Administration's website in Finnish and Swedish.
Please note that the allocation of the acquisition cost described above only applies to shareholders who are subject to unlimited tax liability in Finland. Shareholders who are subject to taxation in another country are advised to consult their own tax advisor or a local tax authority on how the acquisition cost of Cargotec Corporation share and Kalmar Corporation share is determined in their taxation after the partial demerger.
More information about the partial demerger is available from Cargotec Corporation's website https://www.cargotec.com/en/investors/demerger/.
For further information, please contact:
Mikko Puolakka, Executive Vice President and CFO, tel. +358 20 777 4000
Aki Vesikallio, Vice President, Investor Relations, tel. +358 40 729 1670
Cargotec's (Nasdaq Helsinki: CGCBV) businesses Hiab and MacGregor enable smarter cargo flow for a better everyday with leading cargo handling solutions and services. Hiab is a leading provider of smart and sustainable on road load-handling solutions, committed to delivering the best customer experience every day with the most engaged people and partners. MacGregor is a leader in sustainable maritime cargo and load handling with a strong portfolio of products, services and solutions. Cargotec's sales in 2023 totalled approximately EUR 2.5 billion and it employs over 6,000 people. www.cargotec.com
