CEE Legal Matters

Category: Estonia

  • Sorainen Advises Cariad on Cross-border Merger

    Sorainen has advised Cariad Estonia, a Volkswagen Group’s car software company, on a cross-border merger whereby its Luxembourg parent company is merged into Cariad Estonia, making it a subsidiary of Cariad SE.

    According to Sorainen, “Cariad SE is Volkswagen Group’s newest international company, consolidating and expanding the group’s software competencies to develop technological solutions for all Volkswagen brands. Cariad Estonia as one international location for Cariad SE was established in March 2020. Following a strategic adjustment in Cariad SE in 2021, Cariad Estonia is becoming the shareholding hub of all non-German Cariad subsidiaries.”

    At the end of 2021, Cariad Estonia started managing subsidiaries in China, Sweden, and Israel. The management of the remaining subsidiaries will be transferred to Cariad Estonia in 2022.

    Sorainen’s team included Partners Karin Madisson, Paul Kunnap, and Kaido Kunnapas, Counsel Piret Lappert, and Associate Nele Suurmets.

  • Sorainen Pro Bono Helps Synbase Launch Web Portal

    Sorainen has advised Estonian healthcare professionals service provider Synbase on a pro bono basis on data protection matters and has helped it launch a web portal offering access to medical databases.

    According to Sorainen, “Synbase saves healthcare professionals time by combining the latest knowledge in evidence-based medicine into a convenient, comprehensive service offered now both via an integrated software solution as well as a web portal. The service combines 16 evidence-based databases required for clinical work. The constantly updated databases can be used as a support system for clinical decisions by integrating the service into the information system of a family doctor, hospital or pharmacy.”

    Sorainen’s team included Partner Kaupo Lepasepp, Senior Associates Olivia Kranich and Lise-Lotte Laane, and Associate Liisa Kuuskmaa.

  • TGS Baltic Advises City of Tartu and Tartu 2024 Foundation on Supporting European Capital of Culture Tartu 2024

    TGS Baltic has advised the City of Tartu and Tartu 2024 Foundation on organizing the European Capital of Culture Tartu 2024 program.

    In 2019, an international independent panel of experts on European Capitals of Culture named the City of Tartu European Capital of Culture of 2024. 

    TGS Baltic’s team included Partner Peeter Viirsalu, Associate Partner Triin Kaurov, Counsels Triinu Jarviste and Katri Paas-Mohando, and Senior Associate Mari-Liis Orav.

  • Sorainen Advises Bolt on USD 709 Million Investment Round

    Sorainen has advised mobility platform Bolt on raising USD 709 million.

    Sequoia Capital, Fidelity Management and Research Company LLC co-led the round with Whale Rock, Owl Rock, D1, G Squared, Tekne, and Ghisallo participating among others. According to the firm, Bolt’s valuation now is USD 8.4 billion.

    According to Sorainen, “Bolt will be using the funds to continue expanding to new geographies and to bring more consumers and partners to its “super app”; as well as for newer business lines, such as its 15-minute grocery delivery option Bolt Market, including building out ‘dark stores’ in more cities to expand the service beyond the ten where it’s active today.”

    Sorainen’s team included Partner Toomas Prangli, Senior Associate Mirell Prosa, and Associate Vladislav Leiri.

    Sorainen could not provide additional information on the deal.

  • Ellex and Cobalt Advise on Ekspress Grupp’s Acquisition of Geenius Meedia

    Ellex has advised Geenius Meedia shareholders Hendrik Roonemaa and Siim Saidla on the sale of the company to the Ekspress Grupp. Cobalt advised the buyer.

    “The purpose of the acquisition is to grow the digital media business and expand into a niche that the publications of Ekspress Grupp do not yet regularly cover,” Ellex informed. “After the transaction, Geenius Meedia will continue to operate as a separate media company and its main founders Hendrik Roonemaa and Siim Saidla will remain actively involved in the company’s management and daily operations.”

    Founded in 2015, Geenius Meedia is an Estonia-based media company with 13 web portals, podcasts, and print magazines. The Geenius web portals have about 300,000 monthly users. The company’s nine-month sales revenue was approximately EUR 1.4 million.

    The Ekspress Group is a media group in the Baltics that owns four media companies in Estonia, Latvia, and Lithuania. The key focus of the company is the development of digital channels and services.

    “According to the head of Ekspress Group Mari-Liis Ruutsalu, the acquisition of Geenius Meedia will help continue to grow the digital media business, which is an important goal in their strategy,” Cobalt reported. 

    The Ellex team included Counsel Antti Perli.

    The Cobalt team was led by Partner Peeter Kutman and Senior Associate Liina Saaremets and included Partner Karina Paatsi, Senior Associate Tonu Kolts, Associates Anna Kosar and Kristiina Kraav, and Assistant Lawyers Liis Leedo and Ken Saksniit.

  • Ellex Advises on East Capital’s Sale of Mustamae Keskus Shopping Centre to Project Bricks

    Ellex has advised East Capital Real Estate on the sale of the Mustamae Keskus shopping center in Tallinn to Project Bricks.

    According to East Capital Real Estate, the property had been held by the East Capital Baltic Property Fund II since 2016. ECRE is a real estate manager that focuses on commercial real estate investments in the Baltics and Central Europe.

    According to Ellex, “the Mustamae Keskus shopping and entertainment center has more than 21,000 square meters of which the leasable area is approximately 13,500 square meters. The most significant tenants of the center are the Apollo Cinema, operating the most modern multiplex cinema in the Baltics, the Rimi hypermarket, the region’s most modern fitness club MyFitness, and 2,000 square meters of different restaurants and cafes.”

    “Despite the restrictions and challenges we have not seen any increase in vacancy and in some cases we even saw an increased turn-over,” East Capital Group Partner Albin Rosengren commented. “Mustamae Keskus is a high-quality shopping and entertainment center with a strong competitive advantage and strong tenants … We see the center doing very well in the future.”

    The Ellex team included Partners Ermo Kosk and Martin Kaerdi and Associate Karin Tartu.

    Ellex did not reply to our inquiry on the matter.

  • Andrius Digrys Moves to BLRT Grupp as General Counsel

    Andrius Digrys has joined BLRT Grupp AS as its General Counsel in Estonia.

    Digrys moved from Western Shipyard Group (part of BLRT Grupp AS) where he has worked since April 2004 and where he has been serving as the General Counsel since 2013.

    “I’m very happy and honored with the appointment,” commented Digrys. “At the same time, it’s a big responsibility and challenge to take over a guidance of all legal matters in BLRT Grupp AS.”

    Digrys was recently interviewed by CEE In-House Matters for the Deal 5 section, in which he discussed Western Shipyard Group’s successful challenge of a public procurement award. The interview is available here.

    Originally reported by CEE In-House Matters.

  • Deal 5: IuteCredit Head of Legal Kadi Raudsepp on EUR 75 Million Bond Issuance

    On October 18, 2021, CEE Legal Matters reported that Lextal has advised Estonian financial technology group IuteCredit on its EUR 75 million senior secured corporate bonds issuance. CEE In-House Matters spoke with Kadi Raudsepp, Head of Legal & Compliance at IuteCredit, to learn more about the matter.

    CEEIHM: To start, please tell us about IuteCredit and its history.

    Kadi: IuteCredit was established initially in Moldova in 2008, where the Estonian original founders of the company formed a start-up that gave loans to individuals, the majority of whom had no bank account. The start-up turned to be a huge success, shortly after the start of the business, the first investors joined, which eventually enabled to company to grow its business in a very short time and expand the activities also to other countries in the Balkan region. The company has been profitable since the beginning of its operations. The name “Iute” represents nicely our mission and vision (English translation: “spicy“ and “fast“). Today IuteCredit has over 200,000 active customers in Moldova, Albania, North Macedonia, Bulgaria, and Bosnia and Herzegovina and a balance sheet of EUR 100 million. We also raised capital through publicly-traded bonds that are listed on the Frankfurt Stock Exchange and on the Nasdaq Tallinn Stock Exchange.  

    CEEIHM: The company recently issued EUR 75 million in senior secured corporate bonds. Why did you opt for this route to secure financing?

    Kadi: First of all, I would like to say that we are very proud and humble of the trust we got from the retail and institutional investors with our latest bond offering. The initial plan was to issue up to 500,000 bonds in the denomination of EUR 100, but, as the offering was oversubscribed by more than EUR 35 million, we decided to increase the volume to 750 000 bonds. IuteCredit has issued bonds in 2019 as well and listed them on the Frankfurt Stock Exchange, but this offering was not made available to retail investors. As we needed additional funding to support our growth, we decided to make another bond offering, but this time we also wanted retail investors to be able to take part in the great investment opportunity, including the retail investors in Estonia. We had to go quite a way to be able to list the bonds both on the Frankfurt Stock Exchange as well as on the Nasdaq Tallinn Stock Exchange – something that no company had ever done before, but the journey of which was very educative and exciting for all the related parties, I believe.

    CEEIHM: And what are the funds intended for?

    Kadi: The bonds were issued mostly for general business purposes, which includes the financing of our growth in current and future markets as well as potential acquisitions.

    CEEIHM: What was Lextal’s mandate on the issuance – how did you split the legal work between your in-house legal team and your external counsel?

    Kadi: We worked with Lextal hand-in-hand pretty much on everything related to the bond offering. The split of the work was more organic and our external counsel worked with us as being part of our in-house legal team. Thank you Kristi Sild for the great work!

    CEEIHM: And why did you opt for Lextal as your legal advisor on this issuance?

    Kadi: Lextal is actually our long-time partner and as we only have great experiences with working with them, it wasn’t even a question of who to involve in this project. They have a great and reliable team.

    Originally reported by CEE In-House Matters.

  • Pohla & Hallmagi and Sorainen Advise on Hammerhead’s Purchase of Shares of Eesti Elecster and Sale to Avex Metall

    Pohla & Hallmagi has advised Hammerhead on its acquisition of shares in Eesti Elecster. Sorainen advised the sellers on the deal. Pohla & Hallmagi additionally advised Hammerhead on the restructuring of Eesti Elecster, with the industrial part of the business being sold to Avex Metall at the same time.

    Elecster Estonia is involved in the production of machinery and lease of office and commercial premises. The total area of production and office premises is 12,000 square meters, located near central Tallinn.

    According to Pohla & Hallmagi, “Elecster Baltic, a wholly-owned subsidiary of Elecster Plc., and Lucky Hammerhead have signed a deed of sale by which Elecster Baltic sells its shares in Eesti Elecster to Lucky Hammerhead. Elecster Baltic holds 51.0044% of the shares in Eesti Elecster. The transaction amount of the entire share capital is approximately EUR 8.3 million, of which the Elecster Group’s share corresponds to the holding.”

    Pohla & Hallmagi’s team included Partner Toivo Viilup and Lawyer Madli Astok.

    Sorainen’s team included Partner Paul Kunnap, Senior Associate Mirjam VIchmann, Associate Kristi Tammiku, and Assistant Lawyer Joosep Kuusk.

  • Pohla & Hallmagi Help Establish e-Governance Academy Subsidiary in Jamaica

    Pohla & Hallmagi, working with KPMG, has advised on the establishment of e-Governance Academy’s subsidiary office in Jamaica.

    The subsidiary, e-Governance Academy for the Caribbean, is to support digital development in the Caribbean region. Founded in 2002, the e-Governance Academy is a non-profit foundation, a joint initiative of the Government of Estonia, Open Society Institute, and the United Nations Development Program.

    “So far, we have cooperated with 11 countries and they all see Estonia’s digital development as an example for them. Given the size of these countries, this is understandable,” e-Governance Academy CEO Hannes Astok commented. “With the support of our subsidiary, we strengthen our presence in the Caribbean, Central, and South America, and make Estonia’s experience and knowledge more accessible to other countries. Operating in the same economic space also simplifies communication with the governments and organizations in that region.”

    The e-Governance Academy for the Caribbean is the second subsidiary of the e-Governance Academy. Since 2020, the Digital Governance Academy Asia-Pacific, a subsidiary of Mitsubishi Research and Consulting in Japan, provides e-government training, research, and consulting to governments in Asia and the Pacific.

    Pohla & Hallmagi’s team included Attorneys-at-Law Teele Viilup and Juri Ploom.