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Management regards Port of Tallinn's privatization plan as "positive"

Xinhua, November 19, 2016 Adjust font size:

The incoming Estonian coalition's plan to sell off a minority stake in the state-owned port operator is regarded as "positive" by chairman of the board of Port of Tallinn, local media reported on Friday.

The move would focus the administration of the company more on business as well as improve its image outside of Estonia, board chairman Valdo Karm was quoted as saying by Baltic News Service.

Karm said the listing of shares of state-owned enterprises on the stock exchange is bound to revitalize the local stock market and will help make the enterprises known outside of Estonia as well, terming it as "a positive decision that will help make the running of state-owned companies more transparent and business-focused."

He noted that privatization will contribute to the strengthening of the Port of Tallinn's reputation in particular outside of Estonia, which is extremely important from the viewpoint of the company's business.

"Listing will expand capital-raising opportunities in later phases as well, and it will be easier for a listed company to issue bonds, for example," said Karm, emphasizing that the Port of Tallinn was in principle ready for listing.

The Port of Tallinn's major investments in the coming years are connected with passenger services infrastructure and real estate development at the Old Town Harbor, said the report.

The incoming Estonian coalition being established by the Center Party, the Social Democrats and the Pro Patria and Res Publica Union intends to sell up to 30 percent of shares in the Port of Tallinn, up to 49 percent of shares each in both Eesti Energia's renewable energy arm Enefit Taastuvenergia and rail cargo operator EVR Cargo, as well as divest all shares in road construction and maintenance firm AS Eesti Teed.

The Port of Tallinn is the biggest port authority in Estonia, and one of the largest port enterprises of the Baltic Sea in terms of both cargo and passenger traffic. Enditem