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AS Tallink Grupp, Stock Exchange Release,
19.12.2005
Ordering new vessel
AS Tallink Grupp decided to use the rights derived from the option agreement of the cruise ferry Galaxy currently in construction. In reference to the above the Finnish shipyard Aker Finnyards OY and AS Tallink Grupp signed a shipbuilding contract on 17.12.2005. According to the contract the new cruise ferry, sister to the Galaxy, will be delivered by summer 2008. By most of the details the new cruise ferry ordered will be similar to the Galaxy which will be delivered in spring 2006 although with a speed of 24.5 knots the new cruise ferry will be faster than Galaxy which has speed of 22 knots. The price of the new ferry is approximately EUR 165 million of which 20% will be paid during the construction period and 80% will be paid on delivery. Similarly to the previous ferry orders of Tallink the payments during the construction are planned to be financed from the own equity and the majority, which is to be paid on delivery, will be financed by long time debt.
The qualities and the speed of the new cruise ferry will make the vessel suitable for operation on all of the routes in the Northern Baltic Sea (including Helsinki-Stockholm, Riga – Stockholm, Tallinn – Stockholm, Helsinki – Tallinn – St. Petersburg, Tallinn-Helsinki etc.). To take into consideration the different possibilities of the market development during the next 2.5 years when the ferry is being built AS Tallink Grupp does not want to assure in more detail the route that will be operated by the new cruise ferry. There are possibilities for many scenarios both on the current routes as well as on the potential new routes including the replacing of some of the current vessels and the further switch of the rest of the fleet between the routes resulting from this.
We believe that we can improve the range and quality of the services offered to our passengers and that we can further strengthen the competitiveness of Tallink with the new cruise ferry ordered.
Management Board of AS Tallink Grupp.
Additional information:
Peter Roose
Investor Relations Manager
AS Tallink Grupp
tel.: + 372 6 409 800
www.tallink.com |
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