Category: Estonia

Sorainen has advised Riigi Kinnisvara on a public procurement procedure for the purchase of electricity produced from renewable sources.

Riigi Kinnisvara is a real estate development and management company established for the management of real estate belonging to the Estonian state.

According to Sorainen, “as one of the largest electricity consumers in Estonia, RKAS is starting a phased transition of public sector institutions to renewable electricity by the decision of the Estonian government. The purpose of the procurement is to ensure the stability of energy costs of state institutions, as well as increase the share of renewable energy in consumption, establish new renewable electricity production units, and increase the country’s energy security. As a part of the procurement, the bidders are required to develop and construct new renewable electricity generating installations that are capable of generating up to 100 gigawatt-hours of green electricity each year and supply this electricity to RKAS under a long-term power purchase agreement.”

Sorainen’s team included Partner Kaupo Lepasepp, Counsels Kaspar Endrikson and Kadri Harginen, and Senior Associate Mario Sorm.

Sorainen did not respond to our inquiry on the matter.

Sorainen has advised Hobevara on its acquisition of a 90% stake in Shnelli Arimaja from Arealis Holding.

Hobevara is a real estate holding company belonging to the Silberauto group.

According to Sorainen, “Shnelli Arimaja owns the right of superficies of Toompuiestee 35. The A-class office building, located in the heart of Tallinn, serves as headquarters for well-known Estonian brands such as Nordecon.”

Sorainen’s team included Partner Piret Jesse, Counsel Piibe Lehtsaar, Senior Associate Robin Teever, and Assistant Lawyer Karl Oskar Pungas.

Sorainen did not respond to our inquiry on the deal.

Sorainen has advised Estonian ready-mix concrete producer Betoonimeister on the sale of a majority stake to German building materials group Schwenk.

The transaction remains contingent on regulatory approval.

According to Sorainen, “as a result of the transaction, Schwenk aims to expand their operations, especially in the ready-mix concrete production market in the Baltics, which is outside of its current geographical area of operation. Following the acquisition, Betoonimeister’s daily work and management will remain the same, all employees will continue with the company and the current contracts are valid.”

Sorainen’s team included Partner Paul Kuennap and Associate Andra Gruenberg.

Sorainen did not respond to our inquiry on the deal.

Editor’s Note: After this article was published, Cobalt announced it had advised Schwenk on the acquisition. The firm’s team included Partner Peeter Kutman, Specialist Counsel Mart Blondal, Senior Associates Liina Saaremets, Siim Vahtrus, and Helen Sool, and Assistant Lawyer Ken Saksniit.

TGS Baltic has successfully represented KredEx before Estonia’s Supreme Court in a dispute regarding COVID-19 pandemic-related extraordinary loans.

According to TGS Baltic, “the Supreme Court confirmed in its [ruling] that KredEx’s decision to grant an extraordinary loan is a forecast decision, and KredEx was able to consider a wide spectrum of different circumstances when assessing the solvency upon issuing the loan. According to the Supreme Court, KredEx correctly found that, when assessing the borrower’s solvency, in addition to the obligation to repay the working capital loan, the borrower’s other obligations, the bad debt claims of the borrower against buyers, and the notes of the annual report must be considered as well.”

“The Supreme Court explained that if a loan was given while knowing that it would probably not be repaid, it would have a completely different economic meaning and effect as state aid than a refundable loan,” the firm reported. “Thus, the Supreme Court found that KredEx’s views on assessing the borrower’s solvency were appropriate.”

“The decision of the Supreme Court gives KredEx the certainty that KredEx is relatively free in making decisions about issuing loans, and several different criteria, which indicate that the undertaking may not, in reality, return the loan, can be taken into account,” Senior Associate Vitali Sipilov commented. “As such, the Supreme Court’s decision is in line with the economic logic of granting loans and confirms that KredEx’s practice in assessing solvency has been correct and can be continued in the case of future measures as well.”

The TGS Baltic team included Sipilov, Partner Helmut Pikmets, and Counsel Triinu Jarviste.

Cobalt has advised 3Commas on its USD 37 million Series B funding round led by Target Global and including Alameda Research, Jump Capital, and Dmitry Tokarev.

3Commas is a crypto trading platform. According to Cobalt, “3Commas was founded in Tallinn, Estonia, in 2017 to address significant pain points in trading crypto across multiple exchanges. The company plans to use funds to develop further its digital asset trade automation and portfolio management ecosystem. The funds will go towards hiring an R&D team to continue creating new products.”

In 2020, Cobalt advised 3Commas on a USD 3 million investment from Alameda Research (as reported by CEE Legal Matters on November 16, 2020).

Cobalt’s team included Partner Kristel Raidla-Talur, Specialist Counsel Greete-Kristiine Kuru, and Associate Johanna Lumiste.

Cobalt did not respond to our inquiry on the matter.

PwC Legal has advised Arbonics on launching a technology-based platform for carbon systems and ecosystems that aims to simplify and facilitate the functioning of the voluntary carbon market. The service includes drafting commercial contracts. 

Arbonics was founded at the beginning of 2022 by Kristjan Lepik and Lisett Luik, and it develops nature-based solutions to fight climate change. According to PwC Legal, “the company provides a way for landowners and forest owners to earn new income by creating and selling the so-called voluntary carbon credits that can be purchased by polluters to compensate for their greenhouse gas emissions. The data models of Arbonics help landowners take specific decisions – for example, decide how and where to plant new crops – thus resulting in added income for the landowner and a positive influence on our living environment. In April, Arbonics raised EUR 1.8 million from Taavet Hinrikus and Plural in an early investment phase.”

PwC Legal’s team included Partner Priit Latt and Attorney at Law Taivo Liivak.

Mari Manniko has joined PwC Legal in Estonia as Head of Data Protection and Media Disputes.

According to PwC legal, Manniko is a “long-time barrister and current member of the Honorary Court of the Estonian Bar Association, whose interests are media law, labor law, commercial law, and, of course, data protection.” Lawyer Viire Murak also joined PwC Legal, alongside Manniko.

Before joining PwC Legal, Manniko spent almost two years as a Partner with Entsik ja Partnerid. Prior to that, she spent nearly a year as a Partner with Core Legal. Earlier, she was the Head of the Legal Department of Ekspress Grupp, between 2017 and 2020, and spent over 13 years as Attorney at Law with Lextal.

Ellex has advised Toi Toi & Dixi Handels und Verwaltungs on the acquisition of portable toilet rental company Kemmerling.

Toi Toi & Dixi provides and services mobile connection-free sanitary units. It is represented by 47 operating companies in 27 countries. In 2020, the group achieved a turnover of EUR 428 million.

Kemmerling is an Estonian company that rents mobile outdoor toilets and other related products. In its product range, the company also offers other products needed for outdoor events and construction, such as fences, grandstands, building heaters, and various electrical accessories.

According to Ellex, “Toi Toi & Dixi Handels und Verwaltungs and Ilves Invest, the current owner of Kemmerling, signed an agreement according to which Toi Toi & Dixi will acquire 100% of the shares in Kemmerling. The main reason for the transaction is Toi Toi & Dixi’s goal to expand its area of operation to new markets.”

Ellex’s team included Partners Risto Vahimets and Martin Maesalu, Counsel Rutt Vark, Senior Associates Merlin Liis-Toomela, Hanna Pahk, Kaisa Laidvee, and Kadi Sink, Associate Liisbeth Lillo, and Lawyers Anastassia Ostrovskaja and Miikael Tuus.

Ellex did not respond to our inquiry on the matter.

TGS Baltic has advised Ordi majority shareholder Sulev Sisask on the sale of his company shares to Klick Eesti. Arvisto & Partners advised the buyer.

The transaction remains contingent on regulatory approval.

Ordi is a Tallinn-based IT hardware company. Klick specializes in consumer electronics and digital products.

“The transaction is part of the industry consolidation process taking place in Estonia and creates a potential ground for larger transactions in this field in the future,” TGS Baltic informed.

The TGS Baltic team was led by Managing Partner Sander Karson and included Counsel Triinu Jarviste and Senior Associate Maris Vutt.

The Arvisto & Partners team was led by Partner Margus Arvisto.

Cobalt has advised Karma Ventures on its investment in employee relocation management start-up Jobbatical.

According to Cobalt, “the EUR 11.6 million funding round was led by venture capital fund Inventure and included Karma Ventures, Metaplanet, Devotion Ventures, Swiss Post Ventures, Union Square Ventures, and some well-known Estonian angel investors.”

Jobbatical, founded by Estonian entrepreneurs Karoli Hindriks and Ronald Hindriks, and Ankur Agarwal, offers employee relocation and immigration process services.

Karma Ventures is a venture capital fund specializing in late-seed and A-round investments in technology start-ups in Europe.

Cobalt’s team included Partner Kristel Raidla-Talur, Specialist Counsel Greete-Kristiine Kuru, and Associate Johanna Lumiste.

Cobalt did not respond to our inquiry on the matter.

Editor’s Note: After this article was published, TGS Baltic announced that it had advised Inventure on leading the investment round. The firm’s team included Partner Sander Karson and Senior Associates Mirko Kikkamagi, Maris Alt, and Mari-Liis Orav.