Estonian state backs Tallink in buying Silja Line

Edgar Savisaar, the Minister of Economic Affairs and Communications, met the AS Tallink Grupp board today on the 15th of February and discussed the development plans for the Estonian transport and tourism sector and also for AS Tallink Group. Edgar Savisaar confirmed that he would support Tallink Group as the buyer of Silja Line, since it would bring direct benefit to the development of Estonia's economy."Tallink Grupp is the region's most influential international company that is based on Estonian capital," said Edgar Savisaar, the Minister of Economic Affairs and Communications. "I personally consider it to be very important for Estonian companies to be successful in international competition and the Estonian state must do everything it can to support companies based on Estonian capital. It would certainly be beneficial for Estonia to see Tallink buying Silja Line - especially since Tallink is oriented towards creating a strong chain of values. New hotels and Tallink City will bring in numerous new tourists and thereby foster the growth of the Estonian tourism sector."

Edgar Savisaar said that today's meeting raised many painful problems for Estonia that require solutions. "Estonian ships should sail under the Estonian flag," explained Edgar Savisaar. "However, the current situation is such that sailing under the Estonian flag is more expensive to the shipping companies than sailing under, for example, the Latvian flag. In business, of course, companies choose the options with lower costs, but since the countries compete for taxes, Estonia must not treat the business concerns with ignorance. While the Latvian tourism sector is still significantly and up to three times smaller than its Estonian counterpart, it is growing much faster. The Estonian state must help its companies be as competitive as possible."

Enn Pant, the chairman of the AS Tallink Grupp board, said that Tallink as a company with significant influence in Estonian economy would mostly need its country's attitude to be reasonable and for the state to protect the company interests. "Tallink provides a significant part of Estonia's GDP," said Enn Pant. "In three years, Tallink will invest over 8 billion kroons. Tallink's successful activities on the Baltic Sea have irritated the competitors, but we wish to consolidate our positions even further. I believe that Tallink is one of the few Estonian companies that has flown its national flag high both in Sweden and Finland - whereas it is usually the other way round and the Swedish and Finnish companies take a sizable portion of the profits created by companies in Estonia to Scandinavia. Tallink's notation on the stock exchange has given thousands of Estonian citizens the chance to participate in international business."

The objectives of the Ministry of Economic Affairs and Communications are to create overall conditions for the growth of the competitiveness of the Estonian economy and its balanced development through the drafting and implementation of the Estonian economic policy. The Ministry of Economic Affairs and Communications elaborates and implements the state's economic policy and economic development plans in the following fields: industry, trade, energy, housing, construction, transport, traffic management, informatics and telecommunications, postal service and tourism. The Ministry also deals with the co-ordination of the state information system development, research and development and innovation, industrial property protection, competition surveillance, consumer protection, export promotion and trade safeguards, and the issues related to the regional entrepreneurship development and investments.

AS Tallink Grupp (www.tallink.ee) is one of the leading Baltic Sea shipping companies with the main field of activity in the transport of passengers and goods on the Estonia-Finland and Estonia-Sweden shipping lines. Tallink's last fiscal year turnover was 4.1 billion kroons and the company provided services for over 3.2 million passengers during the year. AS Tallink Grupp has 12 ships and the company manages a hotel in downtown Tallinn.

Additional information:

Anu Hallik-Jürgenstein, Executive Officer of the Public Relations Department in the Ministry of Economic Affairs and Communications
e-mail: anu dot hallik at mkm dot ee, tel +372 6 256 493

Enn Pant, chairman of the AS Tallink Grupp board
e-mail: enn dot pant at tallink dot ee, tel +372 6 409 800