Tallink Group lined up for potential take-over

ESTONIA. Tallink Group is examining a number of “strategic options” which could involve a “voluntary or mandatory take-over offer for the company”.

The Tallinn-listed short cruise and ferry operator runs the world’s biggest duty free and travel retail ferry business.

Last year, it transported 9.46 million passengers and had a turnover of €938 million (US$1,090 million), of which 56% came from its retail and restaurant operations.

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In a statement the company said: “The supervisory board has resolved to start an exploratory process relating to potential strategic options for the company. The strategic options… may include attracting new core investors which could lead to some existing shareholders divesting their shares (whether by way of voluntary or mandatory take-over offer for the company or otherwise).”

Tallink’s top three shareholders currently control 62% of the business. Infortar, one of the largest private investment groups in Estonia with interests in shipping and transportation, hospitality, real estate, printing, trading, and financial service industries, has 38%; while Baltic Cruises Holding and Baltic Cruises Investment have 18% and 6% respectively.

The move to sell the business could also interest investors in travel retail eyeing the opportunity of acquiring a stake the Baltic’s leading ferry and duty free and travel retail player.

Tallink’s share price has been trading at just under +10% higher since the announcement

Tallink said that no further notices relating to the process would be made “unless and until this is required or appropriate”. It also said that no assurances could be given that any transaction will necessarily occur. Citigroup Global Markets Limited has been appointed as financial advisor on the process.

Since the announcement, Tallink’s share price has been trading at just under +10% higher. It stood at €1.08 in the early afternoon of 1 August.

Tallink Group runs the world’s biggest duty free and travel retail ferry business
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