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  • Hedman Partners Advises Founders of Taxify on Attracting Investments

    The Estonian Hedman Partners law firm has advised the founders of the Taxify smartphone app in drafting the financing and shareholders’ agreements under which angel investors from the USA, Europe, and Asia made a USD 100,000 seed round investment into the company.

    The investors included Mart Kelder, Martin Villig, and Andrus Purde, Toomas Bergmann and Finnish serial entrepreneur Mikko Silventola. The startup, which launched its service last fall, has previously received a EUR 5,000 grant from Estonian Enterprise.

    Taxify is currently operating in Estonia and Latvia, and said it plans to use the new funding to expand in Eastern Europe in the near term. It offers existing cab companies an all-in-one solution – including a web-based dispatcher and fleet management systems to manage their back-end. These different cab companies are then presented to the consumer within the unified Taxify app.

    Hedman Partners Partner Merlin Salvik and Associates Valter Vohma and Toomas Seppel provided the advice to the founders of Taxify.

  • Allen & Overy Advises ICBC on Turkish Bank Acquisition

    Allen & Overy has advised the Industrial and Commercial Bank of China (ICBC) on its proposed acquisition of 75.5 percent of the issued share capital of Tekstil Bankasi (Tekstilbank) from GSD Holding, for TRY 669 million (approximately USD 316 million).

    Under Turkish capital markets law, the acquisition will trigger a post-closing mandatory tender offer for all remaining shares in Tekstilbank. Tekstilbank, listed on Borsa Istanbul, is primarily engaged in corporate and commercial banking including SME and retail banking. GSD Holding, also listed on Borsa Istanbul, is the Turkish holding company of a group spanning financial services and shipping.

    The transaction is subject to approval from GSD Holding’s shareholders as well as Chinese and Turkish financial regulators and the Competition Board of Turkey. Upon completion, ICBC will become the first Chinese bank to operate in Turkey, which ranks China as its third largest trading partner.

    A&O Partner Gary McLean said of the deal that: “We are delighted to have been involved in this transaction which sees ICBC continuing on its path of expanding in markets across the globe.”

    The Allen & Overy team was led by McLean in Hong Kong, Partner Jane Jiang in Beijing, and Partner Gokhan Eraksoy in Istanbul, with support from Senior Associate Jinghua Zou, James Burton, and Steve Quinn, and Associates Xin Cheng, Catherine Liu Omer Sirin, Taylan Caliskan, Zeynep Saydi, and Deniz Avci. 

    The Turkish Atim & Atim law firm was counsel for GSD Holding.

     

  • Greek Lawyer Among 13 Promoted to Partner by Watson, Farley & Williams

    Greek lawyer Alexia Hatzimichalis was promoted to Partner by Watson, Farley & Williams (WFW), one of 13 such promotions worldwide.

    Hatzimichalis advises Greek and international banks, other financial institutions, Greek shipowning groups and US-listed companies on a wide range of ship finance matters.

    The firm now has 133 partners worldwide. In addition to Hatzimichalis in Athens, the firm made three new partners in both its London and Hamburg offices, two in New York and Rome/Milan, and one each in Bangkok and Paris.  

    Chris Lowe, WFW Managing Partner, said of the promotions that: “I am delighted to welcome these 13 highly talented lawyers to the WFW partnership. They all possess outstanding technical knowledge, as well as a steadfast commitment to providing the superior level of client service that underpins WFW’s success. They are great assets to the firm, who will all contribute to the continued growth and strength of our business. ”  

    Lothar Wegener, another Managing Partner, stated that: “I congratulate these 13 outstanding lawyers on their promotions to the WFW partnership. In addition to highlighting our confidence in these individuals as practitioners, collectively this group of new partners underscores the ongoing strength of the firm as a whole, and the confidence we have in our respective practices.”    

     

  • JPM Advises on Sale of Milos Klinika

    The Serbian JPM Jankovic Popovic Mitic law firm has advised the owners of Milos Klinika on its sale of 100% of its stake to the Blue Sea Capital Investment Fund. 

    Milos Klinika is a leading ophthalmology clinic in Belgrade. Blue Sea Capital Investment is an independent, regionally-focused private equity investor investing in small and mid-sized companies. The Fund states that it is particularly interested in industries and companies with inherent pan-regional or export-oriented growth potential. 

    According to JPM, “the agreement is subject to conditions and approvals customary for this type of transaction.” The JPM team advising the sellers was headed by Senior Partner Nenad Popovic and Partner Jelena Stankovic.

  • Binder Groesswang Advises on Sale of Chocolate Company

    Binder Groesswang has advised the Poell family on the sale of the Salzburg Schokolade company to Viennese investors Philipp Harmer and Christian Schugerl.

    Salzburg Schokolade manufactures chocolate and confectionery, in particular the Salzburg Mozart Balls, marketed under the “Mirabell” brand.

    The transaction included the sale of Salzburg Schokolade and its parent company. The purchase price was not disclosed. The transaction was completed April 30.

    Binder Groesswang Managing Partner Michael Kutschera and Partner Michael Lind led the team, which also included Associates Christian Dax and Mark Reinfeld.

     

     

  • Sorainen Represents Lithuanian Companies in Dispute with Tax Authorities

    The Lithuanian office of Sorainen has successfully represented Zalvaris and Baltical in significant tax disputes with the Customs Department valued at a total of almost EUR 290,000.

    Zalvaris is a leading Lithuanian waste recycling company. Baltical is Lithuania’s largest secondary aluminum casting company. The Lithuanian Supreme Administrative Court ruled in the cases that in order to impose anti-dumping duties, the customs authorities must prove the origin of the goods and that processing operations have been carried out in another country that would serve as a basis for changing the origin of the goods. 

    In the particular matters at hand, the Lithuanian customs authorities had not recognized the certificates of origin for the goods provided by Zalvaris and Baltical. The Lithuanian customs authorities stated that the country of origin of the imported goods was the People’s Republic of China and imposed anti-dumping duties, additional charges, penalties, and default interest. The Supreme Administrative Court found that the customs authorities had failed to carry out an independent inspection, and instead relied solely on European Anti-Fraud Office reports. 

    In its final judgement, the Lithuanian Supreme Administrative Court granted the appeals of both companies and reversed the decisions of courts of lower instance and of the Lithuanian customs authorities that were adverse to the companies. 

    Sorainen Partner Kestutis Svirinas, and attorney Jonas Sakalauskas represented Zalvaris and Baltical.

     

     

     

  • Competition in Poland: Competition Law Enforcement Versus Compliance

    Competition in Poland: Competition Law Enforcement Versus Compliance

    The Polish Competition Authority has prepared an ambitious legislative initiative that may significantly change the regulatory landscape in the area of competition law in Poland. But while the draft legislation was regarded as the magnum opus of the ex-president of the PCA, Malgorzata Krasnodebska-Tomkiel, it is too soon to judge whether the new head of the authority, Adam Jasser, will endorse the initiative in its proposed form. 

    The debate in Poland surrounding the new law is concentrates mainly on one provision: The PCA’s right to impose fines on individuals for their involvement in anticompetitive agreements. Currently, such violations of competition law lead to fines on companies. Businesses under an umbrella of associations of companies and various interest groups, together with the community of legal counsel, have taken desperate actions to convince the PCA that the proposed instrument providing for fines on individuals lacks procedural safeguards and that its application jeopardizes the system of protecting individuals’ rights in administrative proceedings.  

    While the topic of fines for individuals has – not surprisingly – dominated public debate, the new law will also bring other important enforcement instruments to better equip the PCA to defend against violations of competition law.  

    First of all, individuals (including ex-employees) will be able to apply for leniency. Currently, that right is available to undertakings only. In addition, under the new law, companies will have the option to engage in settlement procedures with the PCA which may lead to a 10% reduction in fines. This provision is well-known to businesses which have had competition law-related troubles with the European Commission. It will be interesting to see whether participants in proceedings carried out by the Polish enforcement agency will consider a 10% reduction to be a satisfactory concession. In addition, among the most significantly anticipated changes under the new regime is the “leniency plus” proposal that will incentivise leniency applicants to confess violations of competition law involving products other than those already investigated in a given proceeding.   

    On the merger law front, the new regime will, among others, introduce a two-phase review, where non-problematic transactions will be cleared within one month and those raising competition law concerns will undergo an in-depth review within an additional four months. It should be clarified, however, that the one and four month review periods are to some extent illusionary, as under both phases each information request letter will stop the clock. Interestingly, in the second phase, the PCA felt that there is a need to issue a formal position to a notifying undertaking informing it about identified concerns. This is the first time that the regulator has indirectly agreed to a certain level of transparency in its dealings with notifying undertakings. Therefore, the proposed provision should itself increase predictability in the PCA’s decision-making process.  

    While the proposed changes vary in merits and will have a different impact on different companies, they will inevitably lead to market participants giving more thought to competition law compliance.  Interestingly, that increased awareness is not only due to the risk of fines, but to the substantive complexity of the new rules. Despite the fact that the authority is considering issuing a set of guidelines that will clarify novel mechanisms and concepts, there is a concern that in the transition period all interested parties – including the PCA, undertakings, and their counsels – will find themselves in uncharted territory. There is also universal awareness that the test will then pass to courts.  

    For these reasons, a visible trend has been established of businesses taking internally preventive measures and modifying their dealings to the extent possible, training key individuals, and refreshing and testing procedures that are needed in the event of the PCA’s intervention. In practice it means a rush to implement rigid compliance programmes covering a wide range of internal initiatives. Mock-dawn raids are a very good example. They enable companies to test how their employees, from the reception desk to management board members, act upon unannounced inspections carried out by mock officials from … a law firm. The exercise is highly appreciated by heads of legal departments of undertakings, as it illustrates a company’s level of preparedness in advance of real situations when officials enter business premises “at dawn.”  

    Accordingly, the single most positive aspect of the competition law reform that may materialize in Poland may simply be a more mindful approach to compliance issues, which – not surprisingly – is also an obvious objective of the PCE. 

    By Marta Sendrowicz, Partner, Allen & Overy, Poland

    This Article was originally published in Issue 2 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.

  • Dentons Expands Real Estate Group Across Europe

    Dentons has hired three new partners, four counsel, and six associates for its Real Estate Group in Europe so far in 2014.

    The firm’s recent hires include Paris-based Partner Alexandre Poupard from Allen & Overy, Partner Oren Harpaz and Counsel Nir Assido from Tel Aviv law firm Yehuda Raveh & Co, and Partner Philipp Windemuth, previously with Orrick, who joined the group together with two Counsel, Olga Sandler (working out of the New York office) and Joachim Homeister. Windemuth will divide his time between Berlin and Moscow. The Frankfurt real estate practice also added Counsel Sabine Wieduwilt from Orrick.

    In addition to the new partner and counsel arrivals, six real estate associates joined the European Real Estate Group in the Dentons London, Madrid, Berlin, Prague and St. Petersburg offices.

    In an official statement, Eric Rosedale and Pawel Debowski, Co-Chairs of Dentons’ European Real Estate Group, expressed their shared enthusiasm at the new hires, saying, “the recent additions of 12 new European real estate specialists to our team signify our commitment to growing our talent pool in the midst of a very positive real estate cycle in virtually all of our European markets.” And Evan Lazar, who co-chairs the Global Real Estate Group with Eric Rosedale, added that “these additions reflect our longstanding strategy of growing our Western European capacity while maintaining our market leading position in Central and Eastern Europe.”

     

     

     

  • DLA Piper Advises Burda Magazine Holding on Competition Law

    DLA Piper has advised the Munich-based Burda Magazine Holding company on Austrian-law competition matters in connection with Burda’s acquisition of Wunder Media Production, a digital marketing specialist.  

    Burda is the largest publisher of magazines within the German market, and with 125 employees Wunder Media Production is Germany’s largest digital marketing agency, specializing in the production and publication of high quality daily updated content.

    The DLA Piper team was led by Consultant Florian Schuhmacher, whose practice focuses on antitrust matters. Associate Nicole Daniel assisted with Austrian competition law aspects, and a team from DLA Piper’s Cologne office, led by Partner Jan Dreyer,  advised on German competition law.

    Schumacher said of the deal that: “We are pleased that the notification proceeding was successfully closed and the merger has been cleared in Austria.”

     

     

     

  • Papapolitis & Papapolitis Advises Intracom on Sale

    Papapolitis & Papapolitis has advised the Intracom Holdings in the sale of its 49% shareholding participation in Intracom Telecom to investors in Dubai.

    The value of the deal was EUR 47 million structured as a EUR 35 million cash payment and EUR 12 million as “additional benefit.” According to P&P, the “completion of the transaction is subject to a number of conditions, including necessary corporate approvals.”

    Listed in the Athens Stock Exchange and with 4,806 employees, Intracom Holdings is one of the largest multinational technology groups in Southeast Europe, and includes Intrasoft International, Intracom Defence Electronics, Hol, and Intrakat. The buyer of the 3,802,623 shares that were exchanged was not disclosed. 

    The P&P team working on the transaction consisted of Partners John Papapolitis, George Gravias, Nikolaos Katsaros, and Nicholas Papapolitis.