Sea Containers, the Bermuda-registered transport group, announced yesterday it has increased its stake in Silja Oyj Abp from 50 percent to 75.32 percent.

Sea Containers completed the transaction on June 20 by issuing 2.47 million shares in exchange for the Silja shares it acquired.

That day, Sea Containers share price closed at $14.65, which would make the deal worth about $36.25 million.

Silja, of Finland, operates passenger and cargo services in the Baltic Sea and also owns a cruise ship.

Sea Containers said it intends to take over Silja Oyj Abp entirely through a subsidiary which has launched a tender offer for the remaining shares. The subsidiary, Silja Holdings Ltd., offered 2.25 euros per share and 92.4 percent of the 5.5 million euro par value of the outstanding convertible bonds.

Sea Containers said it would delist Silja Oyj Abp once it owns 90 percent of the company's common shares and has squeezed out the other shareholders, as permitted under Finnish law.

Sea Containers acquired a 50 percent interest in Silja three years ago with the expectation of taking over the company, according to James Sherwood, Sea Containers' president and the chairman of Silja.

He said it has taken three years to make the company profitable.

Sea Containers has spent about $170 million to acquire Silja and the company expects to earn at least a 20 percent return on its investment each year.

Mr. Sherwood said in the release that the book value of Silja's assets, 465 million euros, is substantially lower than the fair market value.

By acquiring Silja, Sea Container's will assume the company's 365 million euro debt. But it will lower its overall debt by selling off part of its holding in Orient-Express Hotels Ltd. from 60 percent to less than 50 percent. That company's debt was estimated at $400 million, according to the release.

Sea Containers plans to expand Sija by replacing a passenger ship on a route between Stockholm and Turku, a Finnish town, with a larger ship and using the existing vessel for freight services. The company said it will likely increase fast ferry services in 2003.

Sea Containers declined 0.42 percent on the New York Stock Exchange yesterday, closing at $14.20.