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Wolseley To Shift Tax Base To Switzerland

Tuesday, September 28, 2010

Wolseley plc, a global distributor of heating and plumbing products and supplier of builders' products to the professional market, has announced a proposed change to the corporate structure of the Wolseley Group, which will see the creation of a new UK-listed Group holding company incorporated in Jersey with tax residence in Switzerland.

The board has concluded that the interests of its business and its shareholders are best served by establishing an international holding company corporate structure that will help provide more certainty in its taxation position, the firm said in a statement on September 27.

Explaining the decision, the company said that the restructure would "enable the group to achieve a competitive effective corporate tax rate." It added that the proposals will not change the tax position of the UK business.

Under Part 26 of the Companies Act 2006, to implement the proposals, Wolseley requires shareholders’ approval. Shareholders are to receive outlined proposals on October 1, 2010. If approved, restructuring will begin from November 23, 2010. Subject to approval, Wolseley will be admitted to the premium segment of the Official List to the London Stock Exchange.