Infortar makes voluntary purchase offer to Tallink shareholders

Infortar, Estonia’s largest investment holding company, has submitted an application to the Estonian Financial Supervision and Resolution Authority (EFSA) to approve a voluntary takeover offer for Tallink shareholders. Tallink would remain a publicly traded company.

“The Estonian economy has been in decline for nine consecutive quarters, the country’s credit rating has been downgraded and geopolitical risk is still high. In case Tallink has shareholders who doubt the economic prospects of our region, this offer will bring liquidity to the market and gives them the opportunity to consider an exit,” Infortar CEO Aïn Hanschmidt said in a statement.

“Infortar believes in the financial and commercial position of Tallink and plans to keep it on the stock exchange. However, it must be taken into account that for large international investors the liquidity of the company’s shares and the depth of the market are limited – the Average daily turnover of Tallink shares for the last year is around 175,000 euros,” Hanschmidt noted.

The company said the buyout offer was voluntary and there was no obligation for anyone to participate. He said all shareholders would be treated equally. It hopes to launch the offering in July after receiving EFSA approval.

The offer would be valid for 35 days and the company wants to offer 0.55 euros per share to Tallink shareholders, the company said. However, this figure is lower than the current market value. On Friday, Tallink shares closed at 0.743 euros.

Given the timing of the offering process, all shareholders can receive dividends for the previous year in the amount of 6 cents per share, whether or not they plan to use their put rights, Infortar said.

The proposed price is similar to Tallink’s average share price over the last three years, i.e. 0.61 euros per share. One year ago, in June 2023, the Tallink share price was 0.56 euros per share.

To accept the offer, the Tallink shareholder must contact his account operator’s bank and submit the order for acceptance of the offer. Settlement of the offer is made via the Nasdaq CSD. Infortar has the financial assets necessary to complete the transaction.

Tallink Grupp operates vessels on various sea routes between Estonia, Finland and Sweden. The company’s fleet consists of 14 vessels operating under the Tallink Silja Line and Tallink Shuttle brands.

Infortar is present in six countries, the company’s main areas of activity are energy, shipping and real estate. The company already holds a 46.8 percent stake in AS Tallink Grupp.

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