Category: Estonia

Fort has advised LHV Pank on the acquisition of a Danske Bank unit consisting of a loan portfolio of Estonian private clients worth approximately EUR 470 million.

Estonia’s Competition Authority must give its permission before the transaction is finalized in autumn. The final scope and price of the transaction will also be determined in that period.

LHV Group is an Estonian financial group and capital provider. Its key subsidiaries are LHV Pank and LHV Varahaldus. 

The Fort team included Partners Minni-Triin Park, Kirsti Pent, and Kuldar-Jaan Torokoff, Senior Associate Olger Kaelep and Attorneys at law Riin Rehepapp, Liina Kais, Kristel Raamat.

Leadell has successfully represented construction company OU Monoliit and Monolit’s board member Jaak Reinmets in a criminal proceeding involving accusations of benefit fraud.

According to Leadell, principal charges were brought against NGO Vahuranna and its board members, who planned to build a harbor with the financial support of the Estonian Agricultural Registers and Information Board. The builders of the harbor – OU Monoliit along with Jaak Reinmets as the legal representative – were also accused of facilitating benefit fraud and knowingly assisting in an illegal act. 

According to the prosecution, the purchaser and the contractor collaborated to incorrectly indicate the price of the investment. Over EUR 170,000 was paid out for the construction of the first stage of the harbor.

Based on the May 31, 2019 court decision, all of the accused were found not guilty and the state was ordered to cover the procedural costs.

The Leadell team was led by Partner Jaak Siim.

Nove has successfully represented firearms manufacturer Lewis Machine & Tool Company in a dispute regarding the public procurement of 5.56mm and 7.62mm automatic rifles for the Estonian Defense Forces.

According to the firm, “Nove’s Attorney at Law Veiko Vaske represented the successful bidder [LMT] in the Public Procurement Review Committee and the administrative court in proceedings initiated by a competing bidder alleging that the required verification test procedures of the successful tender were not passed correctly. The allegations proved to be unfounded and an appeal was not filed. The legal essence of the dispute was the discretion of the contracting authority to interpret its tender documents and to adapt the procedure to collect information according to its actual needs. The result of the dispute paves the way for conclusion of a framework agreement with a value of up to EUR 75 million.“    

Sorainen has assisted Milrem AS secure equity investments from multiple investors.

Milrem is an Estonian defense industry company with a focus on manufacturing unmanned ground vehicles, developing robotic warfare solutions, and performing concept of operations and doctrine level warfare analysis.

Sorainen advised Milrem on all legal aspects of the transaction, including the provision of due diligence materials and joint analysis with the investors, drafting the shareholder’s agreement and other corporate documentation, negotiating the terms of the investment, and other transaction-related issues.

The Sorainen team consisted of Partner Piret Jesse and Associate Robin Teever.

Sorainen informed CEE Legal Matters that it was unable to disclose further information about the deal.

Sorainen Estonia has advised Artist Media on the sale of 90% of its shares to All Media Eesti, the parent company of Estonia’s TV3’s TV channel.

All Media Eesti is owned by international asset management firm Providence Equity Partners. The company’s Estonian portfolio includes Estonian TV channels TV3, TV6, 3+, CTC, RTR, Fox, Fox Life, and National Geographic, digital platforms TVPlay and TVPlay Premium, radio stations Star FM, Power Hit Radio and Radio Volna, web advertising company All Media Digital, and media company Buduaar Meedia.

Artist Media, established in 2002, is an Estonian company that offers complete audio and in-store radio solutions.

The Sorainen team consisted of Partner Toomas Prangli, Senior Associate Piret Lappert, and Associate Robin Teever.

Sorainen did not reply to our inquiries about the deal.

Ellex Raidla has advised LHV Group AS regarding the public offering of additional subordinated bonds. The public offering is carried out only in Estonia.

According to Ellex, LHV offered up to 15,000 additional subordinated bonds under the name of LHV Group with a nominal value of EUR 1,000. The interest rate offered to the investor is 6.0% per year and the maturity date end of 2028. 

In addition, Ellex reports that LHV has the right to increase the offering volume until the issue date by EUR 5 million and issue up to 5,000 additional subordinated bonds, which as a result may be increased up to 20,000 and the total volume of the offering may rise to EUR 20 million. 

The offering is the second series of the LHV bond program, created on the basis of the Prospectus. Under the program, LHV has the possibility to issue subordinated bonds in a total volume of up to EUR 45 million in the course of several issues.

In 2018 Ellex advised LHV on a previous public offer, listing, and admission to trading of subordinated bonds (as reported by CEE Legal Matters on November 12, 2018).  

The Ellex team consisted of Partner Gerli Kilusk and Associate Kadi Sink. 

Pohla & Hallmagi has successfully represented IDEMIA France SAS in a dispute with Gemalto in relation to the decision of the Estonian Police and Border Guard Board to award the contract for producing Estonian ID-cards to it. PwC Legal advised Gemalto, and the Police and Border Guard Board was represented by Core Legal.

On December 28, 2018, the Tallinn Administrative Court found that the decision of the Estonian Police and Border Guard Board to award the contract to IDEMIA France was lawful and the contract had been concluded legally.

On April 18, 2018, the Tallinn Circuit Court upheld the decision of Tallinn Administrative Court. According to Pohla & Hallmagi, the decision came into force on May 24, 2019, when the Supreme Court refused to consider Gemalto’s appeal.

Pohla & Hallmagi Partner Martin Mannik represented IDEMIA France on the deal. The Estonian Police and Border Guard Board was advised by Core Legal Partner Merit Lind. 

Cobalt Estonia has compiled instructional materials for KredEx regarding the general principles of public procurement.

KredEx is a foundation set up in 2001 by Estonia’s Ministry of Economic Affairs and Communications to provide financial solutions based on global best practices.

According to Cobalt, the instructional materials are intended for apartment owners and rental associations who want to apply for grants in order to renovate their buildings. 

The Cobalt team consisted of Specialist Counsel Kadri Matteus. 

Leadell has successfully represented a former employee of Estonia’s Labor Inspectorate in a dispute concerning the legality of release from service.

The Tallinn Administrative Court ruled against the employee and dismissed his claim. The employee then appealed the judgment to the Tallinn Circuit Court, which annulled the decision of the Administrative Court and ordered compensatory damages. 

The Labor Inspectorate filed a cassation appeal with the Supreme Court against the judgment of the Circuit Court, but the appeal was overruled.

Leadell’s team was led by Partner Jaak Siim.

Cobalt has advised Estonia’s Ministry of Economic Affairs and Communications on drafting a model energy performance contract for the public sector in compliance with the EU Energy Efficiency Directive.

According to Cobalt, the model contract focuses on the public sector, which accounts for around one-fifth of the gross domestic product of the EU.

The Cobalt team consisted of Partner Elo Tamm and Junior Associate Richard Reiles.