AS Tallink Grupp, the largest Baltic ferry company, jumped to a five-year high on speculation a fund managed by Citigroup Inc. will increase its stake.
The shares rose 3 percent to 0.89 euro at the close in Tallinn, valuing the company at 600 million euros ($795 million). Volume of 403,374 shares was more than twice the three-month daily average, according to data compiled by Bloomberg. The OMX Tallinn stock index rose 2.5 percent to 752.86 today, the highest since March 2011.
Tallink has gained 15 percent since it said on Dec. 13 that Baltic Cruises Holding LP, a subsidiary of the CVCI Growth Fund II managed by Citigroup Venture Capital International, bought a 15.7 percent stake, paying 1.1 euros a share. An agreement gave Baltic Cruises the right to buy more shares without the consent of other large shareholders until April 30.
“The recent changes in ownership are what’s driving the move, namely, speculation about possible further purchases and about whether the price is heading toward that 1.1 euro level,” Simmo Sommer, head of equity trading at Swedbank Baltic, said by phone from Tallinn today.
Speculation that Tallink may pay its first dividend is also boosting the stock price, Sommer said.
Baltic Cruises bought a combined 7.8 percent stake in Tallink from two investment funds run by Citigroup, the ferry operator said. It also bought shares from Firebird Republics Fund Ltd., Amber Trust SCA and AS Infortar, which retain smaller stakes, it said.