ESTONIA. Shares in cruise and ferry company Tallink fell sharply yesterday on news that the leading duty free and travel retailer on the Baltic Sea has terminated its search for a strategic partner, and amid plans to replace its CEO from 1 May.
Tallink Group’s Supervisory Board has approved the appointment of Paavo Nõgene at the helm of the company from that date for a three-year term, while current CEO Janek Stalmeister steps down but remains a member of the management board. The formal decision took place last Friday and was announced after the Tallinn Stock Exchange closed.
Importantly, Tallink also announced on Friday that it was ending its search for potential strategic partners which could have included new investors or a possible buyer.
In a statement the company said: “The Supervisory Board has decided to end the exploratory process relating to potential strategic options for the company that started in July 2017.
“In the course of the process various strategic options were considered with the purpose of supporting the long-term strategy and development of the company. The company will take the proposals and feedback received during the process into account in further planning and development of its business.”
Following both announcements, Tallink shares were down yesterday by -13% from €1.22 to €1.06 and have only made a slight recovery today (trading at €1.10 at 1.00 p.m. EEST).
Nõgene has served as Secretary General of Estonia’s Ministry of Culture since January 2013 and before this he was Managing Director of Estonia’s biggest theatre. According to Tallink Group he was also “active in private entrepreneurship”.
Nõgene is currently a member of the Supervisory Board of Estonian National Broadcasting and the National Opera, and Chairman of the Supervisory Board of the SA Estonian Art Museum, the SA Estonian Concert, the SA Estonian Drama Theatre, the SA Theatre Vanemuine and the SA Estonian Film Institute. He is also a member of the Estonian Gambling Tax Board.
Enn Pant, Chairman of the Supervisory Board and a shareholder of Tallink’s main owner Infortar (which holds a 38% share), said: “The Supervisory Board’s decision and the appointment of a new Chief Executive Officer will only strengthen Tallink’s current position and prospects.”
In 2017, Tallink Group posted revenue growth of +2.9% year-on-year from its shops and restaurants to reach €536.7 million. Total revenues also hit a record €967 million (+3.1%), from almost ten million passengers.
