The company announced on Wednesday that the management board has decided to supplement the company's dividend policy, according to which, if the economic performance enables it, dividends would be paid in the minimum amount of five cents per share.

The supervisory board also proposed to the management board, for the purpose of improving the company's capital structure, to prepare a proposal for the 2019 general meeting of shareholders to reduce the company's share capital by at least seven cents per share, Tallink told the Tallinn Stock Exchange.

The last time Tallink Grupp changed its dividend policy was in May 2018, when it announced in the interim report on the first quarter of the year that it would raise the minimum dividend from two cents to three cents from 2019.

Tallink CEO Paavo Nõgene said that the decisions made by the supervisory board and the management board are definitely good news for shareholders. He said that Tallink wishes to offer a good dividend yield and a long-term feeling of confidence to both its existing and future shareholders.

"Our message to those who already hold Tallink shares on the Tallinn Stock Exchange and also to those who will soon be able to buy our shares on the Helsinki Stock Exchange is clear — Tallink is the right choice, and it pays to invest in Tallink," Nõgene added.

Tallink has issued approximately 670 million shares, which means that a dividend of five cents a share would mean a payout of €33.5 million per year. Reducing share capital by seven cents would mean a payout of approximately €47 million.

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