Estonian ferry operator Tallink Grupp plans to increase the company’s share capital by 31.5 million euros and launch a new public offering, according to the company’s stock exchange announcement.
The planned application period for new shares is from August 18, 2021 to September 1, 2021, during which the company plans to offer up to 66,988,204 new ordinary shares.
If the number of applications exceeds the number of new shares, the company may increase the number of shares offered by 10% to 73,687,024 shares, as a result of which the company’s share capital will be increased by 34.6 million euros.
The estimated issue price of the share is 0.47 euros per one new share, which corresponds to the book value of the share, ie no premium is applied for the issue.
The new shares will be issued at the same time as the existing ordinary shares of the company, and all shareholders will have similar rights, providing shareholders with the opportunity to receive dividends on their business for the period from January 1, 2021 onwards.
In accordance with the provisions of the Commercial Law, the company’s existing shareholders have a pre-emptive right to new shares, which are applied for the above-mentioned application period. The list of shareholders with pre-emptive rights to the new shares will be determined at the end of the business hours of the Nasdaq Central Securities Depository (Nasdaq CSD) on August 17, 2021 (record date).
The company’s largest shareholder, AS Infortar, which owns approximately 39% of all shares in Tallink Grupp, has granted a share guarantee to the company, under which it undertakes to apply unconditionally and irrevocably for new shares up to a total of EUR 15 million (provided are publicly offered as described above).
Commenting on the intention to launch a public offering of the new shares, Tallink Grupp Chairman of the Board Pāvo Negene said:
“With the onset of the Covid-19 crisis in spring 2020, we had to respond and act quickly to ensure the company’s stability and sustainability, focusing on finding solutions quickly and using the solutions offered by existing financial partners, as well as local market government support mechanisms. We are grateful to both our financial partners and banks and governments for their support and trust in these challenging times. I am pleased that, in addition to the support of our existing partners and countries, trust among our existing investors has grown significantly, more than doubling during the crisis to more than 28,700, including 7,000 FDR owners in Finland. This figure clearly shows our trust in us and the support and confidence of our shareholders in the decisions that have been made in this unprecedented year. ”
The company plans to make a public offering of new shares simultaneously in Estonia and Finland (in Finland in the form of a Finnish Depositary Receipt, FDR). Tallink plans to apply for listing and listing of new shares on the Tallinn Nasdaq Stock Exchange and the Nasdaq Helsinki Stock Exchange (in the form of Finnish Depositary Receipts, FDR).
In order to make a public offer, the Estonian Financial Supervisory Authority must approve the public offer and listing prospectus, which is currently being considered. The public offering is being implemented in cooperation with Swedbank in Estonia and the digital investment platform Nordnet in Finland.
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