Leadell Pilv has advised the Tartu Ulikooli Kliinikum foundation and Valga Haigla AS hospital on the former’s acquisition of 51% of the shares of the latter from the Estonian Town of Valga.
The Leadell Pilv team was led by Partner Urmas Korgesaar, supported by Attorney Karin Ploom.
The Town of Valga was supported by its in-house legal staff.
Cobalt has advised the Nasdaq Tallinn Stock Exchange-listed investment fund Baltic Horizon Fund on its EUR 12.2 million acquisition of the newly reconstructed Piirita shopping center in Pirita, Tallinn, from Matching Holding OU. The Pohla & Hallmagi firm advised the sellers on the deal.
The net leasable area of the Piirita shopping centre is over 5000 square meters, and the property has Rimi and MyFitness as anchor tenants. The acquisition yield is approximately 7.4%, and the acquisition was financed by capital raised in the course of the secondary public offering of the Fund.
“I am pleased to announce that a centrally located neighborhood shopping center has been added to the Baltic Horizon Fund cash flow portfolio in Tallinn,” said Baltic Horizon fund manager Tarmo Karotam. “Piirita Center is attractively compact center, it is located in Viimsi leading to the Merivalja street and Kloostrimetsa street corner. We believe that the proximity of the popular Pirita beach can also be one of the Center’s success guarantees.”
The Cobalt team included Partners Aivar Taro and Egon Talur, Associates Kris Tammistu and Tonu Kolts, and Junior Associate Kadri Kasepalu.
The Pohla & Hallmagi team was led by Partner Juri Ploom, supported by Partner Toivo Viilup and Attorney Taimar Ehrlich.
Hedman Partners has provided Estonian startup SprayPrinter with legal advice to help it get accepted into the US Kickstarter program – a funding platform for creative projects to help artists, musicians, filmmakers, designers, and other creators to find the resources and support they need to bring their ideas to reality.
According to Hedman Partners, “SprayPrinter is a handheld printer that works with spray paint. Combining a mobile app and a SprayPrinter device you can easily paint images from your smartphone on walls without any professional assistance or experience.”
SprayPrinter emerged from the Prototron funding program in 2015, where one of the main prizes was professional legal advice provided by Hedman Partners.
Hedman Partners was represented by Managing Partner Merlin Salvik.
According to SprayPrinter COO Alo Murutar: “If the door to the wide world is ajar then Hedman Partners will help you open it in order to materialize your dreams in a safe and legal way.”
Raidla Ellex has advised Estconde Invest OU on the sale of two office buildings in Tallinn.
According to Raidla Ellex, the “Estconde” trademark has been well-known for 25 years, “and the group is one of the most experienced companies in the Estonian real estate sector.”
The two buildings located at Parnu mnt. 158 contain 6952 and 6910 square meters of space, respectively. The buildings have a total of 22 tenants.
The Raidla Ellex team consisted of Partner Martin Triipan and Counsel Jaanus Ikla.
Raidla Ellex did not reply to our inquiry about the identity of the buyer, or its counsel.
Sorainen Estonia advised Silmaasema, the Finnish optical chain, on its acquisition of a 100% share in Estonian chain Tallinna Optika from its founder Kalev Klais.
According to Sorainen, “with over 40 years of experience, Silmaasema is a leading provider of vision correction and eye care services in Finland. Pasi Kohmo, the company’s CEO, said that Silmaasema plans to continue its expansion and acquisition of the Tallinna Optika chain is the first step in making its business international.”
In 2016, Silmaasema opened 14 new representative offices and acquired six new businesses, in the process obtaining ten new optical goods stores and an eye care hospital. In total, according to Sorainen, Silmaasema now has more than 150 “representations,” – 13 of which are eye care hospitals. The Tallinna Optika chain has eight stores, three of which operate in Tallinn. The company employs 34 people, including 10 optometrists.
The Sorainen team included Partner Toomas Prangli, Specialist Counsel Paul Kunnap, Senior Associate Juulika Aavik, and Associate Mirjam Vichmann.
Sorainen did not reply to an inquiry about the firm advising the seller on the deal.
Tark has advised Swiss drug manufacturer Acino on its acquisition of a medication packing plant from drug manufacturer Takeda.
Acino International AG develops, manufactures, and markets pharmaceuticals in novel drug delivery forms worldwide. The company employs more than 1,300 people. The target markets for the medication packaging site it acquired in Polva, Estonia, include the Baltic States, Europe, and Russia, while the drugs packaged at the plant are brought in from manufacturing plants in Germany, Denmark, and Poland.
The Tark transaction team consisted of Partners Lada Riisna, Hannes Kuun, Tanel Tark, and Marit Savi, and Senior Associate Tanel Kuun.
Both Varul — the Estonian office of Tark Grunte Sutkiene — and Raidla Ellex are reporting success in a dispute before the Estonian Supreme Court involving the country’s Administrative Reform Act. Varul represented 23 smaller municipalities claiming that the Act violated their constitutional rights, while Raidla Ellex defended the Act on behalf of the Government of the Republic of Estonia.
The dispute involves the Estonian government’s plans to have small municipalities (those with fewer than 5000 inhabitants) in the country merge with neighbors to improve municipal management and improve the quality of public services. The government’s plan regarding which municipalities should merge with which provides incentives for those agreeing to comply willingly, whereas those which refuse would — while still ultimately being forced to comply — be denied those financial incentives.
Varul Reports Success in Challenge to 5000-Inhabitant Provision
According to Senior Partner Paul Varul, who led the Varul team on the matter, the Supreme Court’s decision was very favorable to the municipalities bringing the constitutional review. “The Supreme Court agreed with the applicants that the population requirement of 5000 is not a relevant factor and there are other criteria.”
According to Varul, the Supreme Court ruled that if the municipalities can prove that they are still administratively capable, despite reporting a population of less than 5000, it is possible to prevent the forced merger.
“The most important conclusion is, and the Supreme Court has also properly addressed it, that it is possible for those municipalities with fewer than 5000 inhabitants to continue independently. It is also possible for municipalities to challenge the forced merger in court,” he explained.
Raidla Ellex Reports Success in Overall Constitutionality
Although Varul claimed success in having the Court clarify that the 5000-resident minimum is just one of several criteria to be considered and that the targeted municipalities were entitled to a chance to prove that they are otherwise administratively capable, Raidla Ellex also announced that its defense of the Administrative Reform Act on behalf of the Estonian Government was successful.
According to Raidla Ellex, “pursuant to the administrative reform adopted by the parliament, local governments had to initiate merger negotiations by October 1. Twenty-six local governments requested that the Supreme Court repeal the provisions of the Administrative Reform Act. The Constitutional Review Chamber of the Supreme Court found that of the provisions disputed by the 26 local governments only subsection 24 (1), which set the limit of covering the costs of the merger initiated by the government at EUR 100,000, is in conflict with the Constitution. The Chamber repealed the said provision.
The Raidla Ellex team included Senior Associates Juri Raidla and Arne Ots and Associate Martin-Johannes Raude.
Eversheds Ots & Co has advised VitalFields and its shareholders on their sale of the Estonian farm management software company to The Climate Corporation, a subsidiary of Monsanto Company.
The Eversheds’ transaction team was led by Partner Maivi Ots, who was supported by Counsel Marten Amjarv and Associate Marit Kukk.
As previously reported by CEE Legal Matters on December 1, 2016, Sorainen advised the buyers on the deal.
Raidla Ellex has advised the management of Infotark on the funding for its acquisition of shares in the company and the acquisition itself, which gave them a majority stake.
The Raidla Ellex team was led by Partner Risto Vahimets and Counsel Tonis Vahesaar. The firm did not reply to our inquiry about the identity of the sellers, or their counsel.
Raidla Ellex represented the leading Estonian telecommunication company Telia Company in bringing a case involving its acquisition of shares of Eesti Telekom to a conclusion.
Two lower courts had ordered Telia Company to pay EUR 951,835 to the minority shareholders of Eesti Telekom (formerly known as Telia Sonera) who brought the case demanding compensation for having to sell their shares in a distressed situation, but — according to a Raidla Ellex press release, citing the Aripaev financial newspaper –Kristjan Hanni, Partner at Kawe Kapital (one of Eesti Telekom’s minority shareholders), had requested an amount five times that much through the Supreme Court. According to Raidla Ellex, “the Supreme Court refused to hear the case and the proceeding is terminated.”
The Supreme Court refused to hear the supplemental appeal of the minority shareholders.
Telia was represented in the proceeding by Raidla Ellex Partner Toomas Vaher and Associate Martin Maesalu.