Category: Lithuania

Cobalt has successfully defended and later represented Jurgita Jankauskiene, pro bono, in a traffic accident case.

According to Cobalt, Jurgita Jankauskiene “was charged with the death of her daughter in a car accident on November 1, 2014. Almost eight years after the tragedy, the court decision was made in favor of the family of the deceased girl. Contrary to the initial accusations, the other driver of an Audi Q7 was found guilty of causing the traffic accident when he was overtaking the convoy of cars at high speed and failed to pass the left-turning Toyota Avensis driven by Jurgita Jankauskiene.”

According to the firm, “after the car accident, the family of Jankauskai had to face many challenges because a pre-trial investigation was started immediately, after which charges were brought against the mother of the deceased girl. Jurgita Jankauskiene was accused of driving recklessly and causing the traffic accident. In 2020, the court acquitted the woman, stating that Jurgita Jankauskiene did not violate any requirements of the Road Traffic Rules at the time of the traffic accident.”

Furthermore, “the court ruling, which claimed that another participant in the accident may be to blame, was sent to the Kaunas District Prosecutor’s Office after the verdict came into effect. In May 2021, a new pre-trial investigation was started. During the second pre-trial investigation, the circumstances of the incident were additionally investigated, and new data significant for the investigation was obtained. In February 2022, the pre-trial investigation was completed, and the criminal case was referred to the court,” the firm informed.

Additionally, according to Cobalt, “on July 25, 2022, the judge of the Prienai Chamber of the District Court of Alytus found the driver of the Audi Q7 guilty and sentenced him to three years in prison, with its execution suspended for 18 months. The convicted person was also deprived of the right to drive vehicles for one year. The parents of the deceased girl were awarded pecuniary [damages] and EUR 28,000 for non-pecuniary damage each.”

Cobalt’s team included Senior Associate Linas Kuprusevicius.

Deloitte Legal has advised Quadrum Capital on its acquisition of The IT Channel Company from NPM Investments XIII via its subsidiary DTNQ. Reportedly, JBLaw advised DTNQ on the deal. Nautadutilh reportedly advised NPM Capital.

According to Deloitte legal, “this transaction led to the merger of Quadrum Capital portfolio companies Companial and DycoTrade and creation of Novature, a new international platform of Microsoft Dynamics Partners.”

Quadrum Capital is an independent investment company that helps businesses in the mid-market segment.

Companial is a service provider and Microsoft distributor for all Cloud platforms and solutions for more than 1,000 Dynamics partners worldwide. The company has eight offices in seven European countries.

According to Deloitte Legal, Novature seeks to “digitally transform businesses of all sizes through business applications based on Microsoft Dynamics and Power Platform.”

DycoTrade has been providing software solutions and services since 2001. According to Deloitte Legal, “it wants to become the industry standard solution for commodity trading companies in the worldwide supply chains of food, feed, and metals, with the goal of increasing revenue, reducing costs, improving business processes, and reducing risks.”

Deloitte Legal’s team included Partner Tomas Davidonis, Managing Associates Tomas Mieliauskas and Gintare Stoniene, Senior Associate Ieva Bindokaite, Associates Stela Andriuskaite and Greta Lebednykaite, and Assistant Lawyer Anatolii Prokopyshyn.

Lithuania’s SPC Legal and Wint have joined forces to form a new law firm: Noor.

According to Noor, the newly formed law firm is 60 lawyers strong and covers nine practice groups. The management team comprises four board members and Managing Partner Giedrius Murauskas, who also heads the firm’s Restructuring and Bankruptcy group.

The other eight practice groups will be led by: Daiva Usinskaite-Filonoviene for the Dispute Resolution group; Giedrius Danelius for the White-Collar Crime and Compliance group; Mindaugas Rimkus for the Corporate and Transactions group; Marius Rindinas for the Labour Law, Migration, and Gambling group; Povilas Karlonas for the Real Estate and Construction group; Dainius Daugirda for the Tax Law group; Daiva Lileikiene for the Public Procurement group; and Andrius Iskauskas for the IP & Technology, Media, and Telecommunications group.

“The word noor stems from Arabic and means light and lightness. This word perfectly captures our goal of creating the maximum value for our clients while staying casual and cordial … Working with us will be a breeze,” the newly formed firm announced.

The Lithuanian legal landscape is being transformed, with notable changes taking place in the energy, tax, corporate, and employment sectors, according to Lextal Partner Vilma Sabaliauskiene.

“Major changes are taking place in the energy law sector,” Sabaliauskiene begins. Lithuania has just passed an energy law legislative package dubbed the “breakthrough package,” and she says that it puts the Baltic country ahead of the curve in the European Union. “The changes make it easier to construct renewable energy power plants, primarily solar and wind-powered.”

For example, Sabaliauskiene shares that solar and wind power plants can now be constructed on agricultural land as well, without any need for implementing sanitary zones. “This package of laws is quite similar to the upcoming EU Renewables Energy Directive, so it’s a good move for Lithuania to have passed it, both from a legislative standpoint and, also, on account of decreasing the dependency on fossil fuels.” Moreover, she reports that pollution taxes and corporate fines for environmental breaches have been increased, further seeking to prevent damaging the environment.

In addition to the energy sector, Sabaliauskiene reports that the tax system is due for comprehensive reform this autumn. “The reforms, which are to be implemented over the course of the next two years, seek to do a number of things. Firstly, the scope of the real estate tax is to be extended to all real estate properties and is to be applied to all natural persons,” she says. So far, the real estate tax had a value threshold beneath which the properties were not taxed, but the reforms will amend this.

“Secondly, the dividends tax will be applied only in the case of dividends being distributed and paid, akin to the system in Latvia, Estonia, and Poland.” Finally, Sabaliauskiene says that the reforms will also “extend fewer benefits to the income tax paid by the citizens.”

The corporate sector did not go unnoticed, with Sabaliauskiene reporting that a new company law is in the pipeline for Lithuania. “The new law will regulate remote shareholder meetings, create a procedure for minority shareholder buyout, as well as lower the minimum statutory capital requirements for the incorporation of limited liability companies – from EUR 2,500 to EUR 1,000,” she explains. Additionally, starting in August, Lithuania will establish a registry of ultimate beneficial owners, with “companies having to declare accurate information and submit it to the relevant registries,” she adds.

The labor code was also changed, with the legislative framework “finally including the definition of mobbing,” Sabaliauskiene shares. “Also, the changes will further take care of the employees, extending the protections to non-work hours as well, especially in those instances where the employers can extend their influence beyond business hours,” she explains.

Reflecting on the high number of legislative updates, Sabaliauskiene adds: “in Lithuania, we always enjoy creating and changing laws – it’s the subsequent implementation that is a challenge!”

Finally, Sabaliauskiene says that, with inflation levels reaching 20% in July, “debt collection and insolvency cases increased. This is already a trend and, with the way things are right now, and the fact that EU sanctions on Russia are impeding certain contracts from being performed, I only expect it to continue,” she concludes.

Cobalt has advised Practica Capital on its investment in a wellness and rehabilitation center in Druskininkai operated by UAB Upa MCT. Walless advised UAB Upa MCT.

Practica Capital is an early-stage venture capital investor dedicated to backing Baltic founders.

UAB Upa MCT operates the wellness, SPA, and rehabilitation center UPA Medical SPA, which is equipped with 90 rooms, a swimming pool, a sauna area, rooms for massages, body and face care, and therapeutic treatments, a conference hall, a restaurant, and other infrastructure.

Cobalt’s team included Partner Akvile Bosaite.

Walless’ team included Partner Povilas Zukauskas, Senior Associates Liucija Bitinaite, Alma Marcinkute, and Mantas Lideika, and Junior Associate Ieva Pikaite.

Averus has advised American fund X5 TG Acquisition Co on its acquisition of a Lithuanian IT company.

According to Averus, the deal was valued at up to EUR 1 million.

The necessary steps included “obtaining approval from National Security Commission, ensuring the deal is in line with all national safety requirements,” X5 TG Acquisition Co CEO James Crennan commented.

The Averus team included Managing Partner Laura Cereskaite-Kinciuviene and Associate Partner Lina Taletaviciute-Misiuniene.

Averus did not respond to our inquiry on the matter.

Cobalt has advised Asgaard Oriens on its investment in a vertical farm in Lithuania co-developed by the Leafood Group. Motieka and Audzevicius advised the Leafood Group.

According to Cobalt, the planned investment will reach EUR 6.45 million. “The Lithuanian company Leafood Group together with Taiwanese partners YesHealth Group will build a four thousand square meter vertical farm in Vilnius. Leafood will make it possible to grow healthy raw products closer to the main consumers. The national development institution Investment and Business Guarantees also contributed to the financing of the vertical farm by providing a EUR 3 million loan under its instrument Startuok.”

Cobalt’s team included Partner Elijus Burgis and Managing Associate Deimante Pagiriene.

Motieka and Audzevicius’ team included Partner Rokas Jankus and Senior Associate Aivaras Grigas.

Cobalt, working with Mayer Brown, has advised Aurelius on the acquisition of McKesson UK. Sorainen advised the seller.

Aurelius is an asset manager with activities across Europe. McKesson UK is a pharmaceutical company active across retail, digital, homecare, and wholesale and operates the LloydsPharmacy brand.

The Cobalt team included Partner Elijus Burgis and Managing Associate Deimante Pagiriene.

The Sorainen team included Partner Mantas Petkevicius, Counsel Irma Kirklyte, and Senior Associates Mindaugas Baniulis, Aurelija Daubaraite, and Gerda Skirbutiene.

Cobalt has advised Bewi on its acquisition of the Lithuanian insulation company UAB Baltijos Polistirenas. Triniti advised the sellers on the deal.

Bewi is a provider of packaging, components, and insulation solutions. 

According to Cobalt, “BalPol is the market leader in Lithuania for insulation solutions from expanded polystyrene and PIR, and for EPS packaging solutions. By acquiring 100% shares of BalPol, Bewi will stand as a market leader in Lithuania by broadening its insulation offering and having new products such as PIR and MW sandwich panels and PIR insulation boards.”

Cobalt’s team included Partner Elijus Burgis and Managing Associate Deimante Pagiriene.

Trinit’s team was led by Partner Giedre Ciuladiene.

Cobalt has advised Norwegian technology company Kongsberg Defense & Aerospace on the acquisition of the Lithuanian small satellite manufacturer NanoAvionics. TGS Baltic advised NanoAvionics founders Vytenis Buzas and Linas Sargautis who, together with AST & Science, sold NanoAvionics. Ellex advised AST & Science.

According to Cobalt, “NanoAvionics is a leading smallsat mission integrator and bus manufacturer with significant global growth in recent years, including expansions into the United Kingdom and the United States.”

“By acquiring NanoAvionics, Kongsberg expands its portfolio to also have products and technology for designing and manufacturing small satellites”, said Kongsberg CEO Geir Haoy.

Cobalt’s team included Managing Partner Irmantas Norkus, Partner Juozas Rimas, and Senior Associates Zygintas Voronavicius and Manvydas Borusas.

TGS Baltic’s team included Partner Marius Matonis and Associates Paulius Dabulskis and Kotryna Visockyte.

Ellex’s team included partner Ramunas Petravicius, Senior Associates Augustinas Macionis and Marijus Dingilevskis, Associate Andrej Jemeljanov, and Junior Associate Ovidijus Girdauskas.