Acquisition of development and franchise rights of Burger King restaurants in the Baltics
AS Tallink Grupp (the “Company”) has acquired exclusive development rights for global fast food chain Burger King in Estonia, Latvia and Lithuania. The first Burger King restaurants are planned to be opened in Tallinn this winter and the first restaurants in Latvia and Lithuania in the first half of 2020. The Company plans to open and operate restaurants across Estonia, Latvia and Lithuania and expects the expansion to create a total of nearly 800 new jobs in the Baltic states. The Company will hold the licence to operate each restaurant for 20 years from opening.
”Tallink made history already in 2016 when the world’s first floating Burger King restaurant was opened on Star. Now we are making history again, bringing the iconic true American-style Whopper burger as well as the rest of the popular Burger King products to the people of Estonia, Latvia and Lithuania” Paavo Nõgene, CEO of Tallink Grupp said. “We have taken a number of steps to expand the activities of Tallink Grupp’s onshore as well as on the sea and the acquisition of the Burger King franchise across the Baltics is another important step forward with our onshore expansion plans. We are pleased that we are able to leverage the existing internal know-how and competence of our retail and restaurant operations teams. Tallink will continue to seek expansion opportunities onshore and on the sea, both in the Baltic Sea region as well as further afield,“ Nõgene added.
The acquisition of franchise rights will not impair the Company’s ability to serve its debt and investment commitments. To operate the Burger King restaurants AS Tallink Grupp has established a wholly-owned subsidiary OÜ Tallink Fast Food. Establishment of the subsidiary will not affect the consolidated financial results of the group. Establishment of the subsidiary cannot be interpreted as acquiring of a major holding for the purposes of the Nasdaq Tallinn Rules and Regulations chapter Requirements for Issuers and does not have a significant impact on the activities of the group. The members of the Supervisory Board and Management Board of AS Tallink Grupp have no other personal interest in the transaction.
Advisor to the Management Board
Head of Investor Relations
AS Tallink Grupp
10111 Tallinn, Estonia