Release Date: 17 June 2006
Release ID: 461
AS Tallink Grupp has reached an agreement with Sea Containers Ltd to buy the stock of Silja Oy Ab for 450 million euros and 5 million shares of Tallink Grupp shares.
Enn Pant, Chairman of the Board of Tallink Grupp, says that as a result of the acquisition Tallink and Silja will together form the leading shipping company in the Baltic Sea area, which has been a vision of Tallink for years. “Tallink’s bold and successful growth strategy is boosted by Silja Line’s long history, valuable brand and outstanding professionals. This transaction is firmly founded in our conviction that clients, employees as well as shareholders will benefit from the integration of these two shipping companies.”
Tallink is strong in travel between Estonia and Finland, Estonia and Sweden and Latvia and Sweden. Silja has a leading position between Finland and Sweden.
The integrated company will be the leader of the cruises and passenger travel market on routes between Estonia, Finland, Germany, Latvia and Sweden and an important player in cargo transportation on the Baltic Sea.
“We will now be able to actively develop our business and brand and be able to offer access to the entire Baltic Sea for all of our customers. As part of a dynamic and expansive group we will be in a good position to also offer our marketing expertise and knowledge gained from servicing the Finnish and Swedish routes and from marketing the services on the continental and international markets,” says Antti Pankakoski, Silja Line’s CEO.
Travel on board Tallink, Superfast and Silja ferries will continue as usual. There are no changes planned in schedules or routes. All bookings are valid, client loyalty benefits will remain in effect and customer service will continue everyday business. Vessels will continue under current flags. The larger and more international company will offer skilled personnel enhanced career opportunities.
The transaction will not include the SuperSeaCats fast ferry services between Helsinki and Tallinn, which will continue to be operated by Sea Containers.
Tallink Grupp AS is a dynamic and fast-growing international shipping company operating currently 15 vessels in the Baltic Sea region and offering high quality cruise and passenger transport as well as cargo services. The company carried 3.2 million passengers in the financial year ending in August 2005, reached a revenue of EUR 260 million and employed 2 632 people. Tallink Grupp is listed on the Tallinn Stock Exchange.
Silja, including SeaWind Line, operates 6 vessels between Finland and Sweden. The passenger volume on these routes was 3.4 million, the revenue of business now being sold to Tallink Grupp was EUR 380 million (pro forma) in 2005. The number of employees was 2740 in 2005.
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