Tallink seeking for major investor

The listed company Tallink Grupp AS informed the stock exchange that they have initiated “a process for exploring strategic options”, which could mean that a large share of the enterprise is for sale.

Investment banker Henrik Igasta explained that if an enterprise makes such a statement, it generally means the sale of the company. “In other words, they are seeking for a new majority owner”, he detailed.

The massive transaction would not be a big surprise for Igasta. “One can presume that the current majority owners have received some indications and if the deal should go through, it would hardly be unprofitable for them”, the financial expert explained. Yet it is unclear at present, which of the firm's major shareholders would sell their shares.

In case the new core investor should acquire majority share or more than 50 percent of shares, it has to make a take-over offer to small investors. That could, but need not mean that Tallink will leave the list of firms quoted on the stock exchange. “There are many speculations at present, but next months should show what will happen”, Igasta said.

Tallink Grupp announced July 19 evening that the supervisory board of the group had decided to initiate a process of considering possible strategic options for Tallink. Citigroup Global Markets has been appointed as the financial advisor of this process, the firm stated.

The strategic options under consideration would have to support Tallink's long-term strategy and can be linked with involving new core investors for the company, which can result in some of the existing shareholders divesting their shares, the board said.

The firm's management board also said that no further announcements relating to this process would be made unless it is required or appropriate. “It is not possible to give any assurances for the time being that any transaction will occur as a result of this process.”

As of now, 38 percent of Tallink Grupp belongs to AS Infortar, which is owned by Ain Hanschmidt, Enn Pant and Kalev Järvelill.

A further 23.68 percent of Tallink or 158.6 million shares belong to three enterprises, which recently concluded an agreement. According to the company's stock exchange announcement Citigroup Venture Capital International Growth Partnership (Employee) II L.P. on July 6 granted a right of first refusal to purchase any or all of the shares in the company to Baltic Cruises Holding L.P., which owns 16.1 percent of Tallink, and Baltic Cruises Investment L.P., which owns 5.51 percent of the shipper.

The three enterprises also agreed to only divest shares they owned in the same transaction, at the same time, in the same proportion and on similar terms. The agreement is terminated when none of the companies hold shares in Tallink.

The price of the share on July 19 closed at 0.946 euros, which would make the price of the share package 150 million euros.

Read also other news of Tallinn.

postimees
Tallink TallinkGrupp
If you notice an error, highlight the text you want and press Ctrl + Enter to report it to the editor
No rates yet
I recommend
No recommendations yet

Comments

Post your comment to communicate and discuss this article.

Politics
Chairman of the Estonian Chamber of Commerce and Industry and one of the owners of construction group Nordecon, Toomas Luman, finds that a prime ministerial candidate should first and foremost be able to answer the question of what will become of the demographic crisis in Estonia. The businessman sees controlled introduction of foreign labor as the solution. A digital construction cluster was created in Estonia a few years back to bring innovation to the s...
Society
Last year saw 27,125 registered offenses, up 0.5 percent from the year before. Violent crime was up by 12 percent to 8,249 offenses. PHOTO: Dominic Lipinski / PA Wire / Press Association Images / Scanpix Growth was biggest for domestic violence – the police launched criminal proceedings in 3,607 cases that constitutes an increase of more than one-third – annual growth of 37 percent from 2,632 cases in 2017. At the same time, reports of domestic violence we...
Society
TALLINN - Ahead of the withdrawal of the United Kingdom from the European Union, tens of thousands of British citizens have chosen the citizenship of some other country, but only one Brit has recently chosen an Estonian citizenship. Spokespeople for the Ministry of the Interior told BNS that only one British citizen submitted an application for Estonian citizenship last year and the applicant was also granted the citizenship. Before that, no Brits had soug...
Society
TALLINN - Experts from Finland, Denmark, Norway and the Netherlands highlighted the importance of decentralization and granting local governments greater decision-making powers at a conference titled "Strong local government -- strong state?" in Tallinn on Wednesday.  All Nordic countries have chosen a model granting local governments significant decision-making powers, thus the central government does not prescribe how local governments are to fulfill the...
Society
The language learning application Drops by game developer Planb Labs, established in Estonia by Hungarian founders, was named Google Play's best app of 2018. With the number of downloads surpassing 10 million, Drops was named Google's app of the year as the revenue of Planb Labs, a company registered in Estonia, increased fivefold, CNBC said. The developer's revenue grew from €335,000 in 2017 to €1.7 million in 2018. The company's shareholders include Hung...
Society
TALLINN - The Estonian Health Board has banned the distribution of chlorine dioxide, also marketed as the Miracle Mineral Supplement (MMS), the A-component of an unused product, meaning the sodium chlorite solution, must be taken to a hazardous waste collection facility. Ester Opik, head of the Health Board's North regional department, said that the banning of the distribution of the product was caused by the fact that MMS, distributed as a cosmetics produ...
Society
Nature cannot abide a vacancy, as the saying goes. If just one year ago, Estonia was battling the sale of MMS and the practice of giving it to children, a new “miracle cure” called Advanced TRS has appeared on the market now. Even though the make-up of the substance is different, the promise to cure autism and cleanse the body of heavy metals, which kind of extreme detox is accompanied by severe side-effects, sounds all too familiar. TRS is recommended to...
Society
Allied NATO battalions will soon mark two years serving in the Baltics. They have worked better than expected but would need prepositioned heavy weaponry and a functional contingency plan in case of a crisis, a report by the International Center for Defense and Security (ICDS) finds. “We do not know how Russia would have acted had we not welcomed allies in Estonia, Latvia, Lithuania and Poland in 2017. I’m afraid they would have tested our resolve,” one of...
Society
The time of filing income tax returns is nearly upon us. The new income tax system, in effect since last year, will obligate many women who went on maternity leave toward the end of the year to make additional income tax payments, while those who give birth in the middle or at the beginning of the year have no such obligation. What this means is that some women will owe the state simply for giving birth “at the wrong time”. Laura Roop, who went on maternit...