What are the tax and filing implications for existing AKH shareholders receiving the AKHH dividend shares, and how might that influence investor behavior?

Tax & filing impact – In Norway a dividend paid “in‑kind” is treated as a cash dividend for tax purposes. The market value of the AKHH shares that each AKH holder receives is taxable as ordinary dividend income in the year of distribution, and the recipient must report that amount on the 2025 Norwegian tax return (or on the equivalent filing for any foreign‑resident shareholder). The shares received become a new cost‑basis equal to their fair market value on the distribution date, so any subsequent sale will be subject to capital‑gains tax on the difference between the sale price and that basis. For non‑resident investors the dividend will generally be subject to a 25 % withholding tax (subject to treaty relief) and must be declared on the relevant foreign‑tax return, often with a credit claim against the home‑country tax. Because the event creates both an immediate taxable liability and a new share position, many shareholders will have to file an additional schedule (e.g., Norway’s “RF‑1030” for dividend income) and may need to plan a cash outlay to cover the tax bill.

Behavioural & trading implications – The tax‑drag and filing burden tend to prompt two predictable reactions. First, a portion of investors will sell a slice of the newly issued AKHH shares shortly after the record date to generate cash for the tax payment, creating short‑term downward pressure on the AKHH price (and potentially on AKH as the market adjusts for dilution). Second, tax‑aware shareholders who intend to hold the shares for the long term may view the in‑kind dividend as a “free” allocation, but they will factor the effective dividend yield after tax into their required return, which can dampen buying enthusiasm for both securities. Practically, traders can look for a modest, intraday sell‑off in AKHH on the ex‑dividend date and a possible rebound once the initial tax‑covering orders are absorbed. A short‑term strategy could be to enter a “sell‑half‑the‑dividend” position in AKHH (or a covered‑call overlay) to capture the price dip while preserving upside for the remaining shares. Long‑term investors should monitor the revised cost basis and any changes to AKHH’s float, as the dilution may slightly lower earnings per share but the added capital from the parent‑company’s strategic investments could offset that over time.