Category: Lithuania

On June 22, 2021, CEE Legal Matters reported that Motieka & Audzevicius had advised Elektroniniu Pinigu Bite on obtaining an electronic money institution license. According to the firm, Elektroniniu Pinigu Bite “serves related companies – mutual lending and crowdfunding platforms FinBee, FinBee for Business, and their customers.” CEE In-House Matters spoke with Darius Noreika, CFA and CEO at Finbee, to learn more about the matter.

CEEIHM: Tell us a bit about Finbee/Elektroniniu Pinigu Bite.

On April 13, 2021, CEE Legal Matters reported that the Vilnius office of Walless had advised the founders of the Alwark Group on the sale of 66% of their shares in the company to the KJK Fund III. CEE In-House Matters spoke with Gediminas Simkus, Member of the Board of the Alwark Group, to learn more about the sale.

CEEIHM: Tell us a bit about Alwark?

Gediminas: For more than ten years we have been providing the services of sales, rental, and maintenance of new and used material handling, warehouse, seaport, airport equipment, municipal machinery, and supplying the spare parts.

We operate in all Baltic states – Lithuania, Latvia, and Estonia. We maintain over 3.500 industrial equipment units in the region.

Our business procedures are very flexible, we pay equal attention to servicing large enterprises and doing successful business with smaller customers. Striving for a long term partnership, the company gives advice in choosing the most cost-effective technical solution and provides maintenance for the equipment purchased or leased. Our clients include seaports, airports, freight terminals, and companies providing industrial, logistics, and municipal services.

We take great care and responsibility in offering only high-quality brand products. We represent leading manufacturers such as: Linde, Terberg, Konecranes Lift Trucks, Mantsinen, Johnston Sweepers, Moro Kaiser, RASCO, Overaasen.

CEEIHM: The KJK Fund III recently acquired 66% of the shares in the Alwark Group from its founders. What were the reasons behind the sale?

Gediminas: As founders, we see nice growth opportunities for the company, however it would be hard to achieve them without additional investment.

CEEIHM: What is the plan for Alwark following KJK Fund III’s investment.

Gediminas: We have ambitious an growth plan (targeting EUR 95 million in 2025) both organic and with help of new acquisitions in the Baltics and neighboring countries. There‘s a new board already in place where the founders have 2 chairs and KJK has 3. All board members are determined and motivated to work together and lead the company into its new development stage.

CEEIHM: Walless advised your company’s founders on the sale. What was the firm’s mandate on the deal?

Gediminas: Walless was fully involved in this process, leading us through all of it, including deal structure advice, data room, tax, TS to SPA, and closing procedures.

CEEIHM: Why did you choose Walless as your advisor?

Gediminas: We had some experience with Dovile Burgiene already in the past. Taking into account our own experience as well as the recommendations from the market, Walless easily became our top choice.

Originally reported by CEE In-House Matters.

TGS Baltic has advised Greituolis on the sale of 67% of the shares of its online grocery retail platform LastMile to Iki. Walless advised the buyer on the deal.

Financial details of the transaction, which is contingent on regulatory approval, were not disclosed.

Iki, operated by Palink, is a Lithuanian supermarket chain.

According to TGS Baltic, through the acquisition, LastMile will become a part of the Germany-based REWE Group and will be able to expand across Europe.

TGS Baltic’s team in Lithuania consisted of Partners Dalia Tamasauskaite-Ziliene and Vidmantas Drizga and Associate Julija Skardziute.

The Walles team included Managing Partner Dovile Burgiene, Associate Partners Alina Makovska and Darius Miniotas, Senior Associate Guoda Sileikyte, and Junior Associate Migle Jeremiciute.

TGS Baltic has advised Konstantinas Karosas, Western Petroleum Limited, and UAB MB Valdymas on obtaining approval from the European Central Bank for the acquisition of the qualifying shareholding and voting rights in UAB Medicinos Bankas.

According to TGS Baltic, this case is particularly interesting as the qualifying shareholding in the bank was acquired through inheritance. In addition, according to the firm, the ECB allowed Konstantinas Karosas to acquire more than 50% of the share capital and voting rights and his company, Western Petroleum Limited, to also acquire the qualifying shareholding and voting rights in the bank. Furthermore, the ECB also approved UAB MB Valdymas’s acquisition of all the voting rights in the general meeting of shareholders of the bank from Karosas and Western Petroleum Limited.

TGS Baltic’s team consisted of Partner Robertas Degesys, Senior Associate Karolina Lapinskaite, and Legal Assistant Kotryna Visockyte.

The firm did not reply to our inquiry about the case.

Cobalt has advised the BaltCap Infrastructure Fund on the sale of its Energia Verde to Gren.

The transaction is contingent on customary closing conditions.

Energia Verde is a Latvian operator of biomass combined heat and power plant in the Riga region. According to Cobalt, “the woodchip-fired CHP plant is equipped with a 18 megawatt HoSt Bio-Energy Installations high-pressure water tube steam boiler and a 3.98 megawatt steam turbine.” In addition, according to Cobalt, the plant supplies Riga with electricity and heat. Gren is described by Cobalt as a “Northern European green energy company held by the Partners Group.”

In 2018, Cobalt advised BInF on its acquisition of 70% of the shares of Energia Verde from Energoeco (as reported by CEELM on October 31, 2018).

Cobalt’s team consisted of Partner Guntars Zīle and Senior Associate Martins Tarlaps.

Motieka & Audzevicius has helped the Pharnasanta Group obtain competition clearance for the acquisition of the Vilniaus Metrologijos Centras metrology company.

According to Motieka & Audzevicius, “Vilniaus Metrologijos Centras was fully state-owned and just recently placed for privatization by a public tender in which our client has placed the highest winning bid.” According to the firm, the Vilniaus Metrologijos Centras base comprises of more than 1,800 metrology standards and follows national and international standards. It performs verification, testing and calibration and is also involved in international inter-laboratory comparisons and methodology development.

Motieka & Audzevicius’ team included Partner Giedrius Kolesnikovas and Associates Aivaras Grigas and Laurynas Ramonas.

Sorainen has advised real estate management company Agathum on a non-public three-year bond issuance, with a nominal value of EUR 1.5 million.

According to Sorainen, in the future, the company will have the opportunity to increase its bond issue to EUR 3 million. The company will pay 7.5% annual interest on the funds raised. The bond issuance was distributed by Siauliu bankas.

Sorainen’s team included Partner Tomas Kontautas, Senior Associate Dalia Augaite, and Associate Ieva Dagyte.

Walless has advised UAB Fintegry on obtaining a payment institution license from the Bank of Lithuania, authorizing the company to provide account information services.

According to Walless, “the license authorizes UAB Fintegry to expand the scope of its current services and to enter licensed payment services area. The company already provides its IT services to credit institutions, fintechs, regtechs, and other clients.”

Walless’s team included Partner Gediminas Reciunas, Associate Partner Simona Kisunaite, and Associate Viktorija Dusajeva.

Motieka & Audzevicius has advised AB Linas Agro Group on competition clearance in Lithuania for its acquisition of the AB Kauno Grudai group of companies.

According to a Linas Agro Group announcement, upon successful completion of the transaction, AB Linas Agro Group will acquire 34 companies operating in the three Baltic States, Russia, Belarus, Poland, and other countries.

The company announced the merger has also been authorized by the competition authorities of Latvia, Estonia, Poland, and Russia.

Editor’s Note: After this article was published, we learned that Cobalt advised the shareholders of AB Kauno Grudai. The Cobalt team consisted of Managing Partner Irmatas Norkus, Partners Rasa Zasciurinskaite and Rokas Daugela, Senior Associate Justinas Sileika, and Associate Milda Vaznelyte.

Cobalt has advised Lithuanian ME Investicija on its investment in US logistics start-up Project44. Wilson Sonsini Goodrich & Rosati advised the start-up.

The amount invested was not disclosed.

According to Cobalt, Project44 is the world’s leading advanced visibility platform for shippers and logistics service providers. During the completed round of E-series investments, Project44 attracted over USD 200 million, with its valuation reaching USD 1.2 billion. 

Cobalt’s team consisted of Partners Elijus Burgis and Eva Suduiko.