Category: Lithuania

TGS Baltic has advised Medicinos Bankas on its purchase of rights of claim to a EUR 29.8 million loan portfolio from UAB Baltijos Kredito Sprendimai to home, student, and consumer loans of former clients (natural persons) of the failed bank Snoras. Ellex reportedly advised the sellers on the deal.

Medicinos Bankas is a Lithuanian capital bank, which has 53 customer service units all over Lithuania. The main clients of the bank are micro, small, and medium enterprises, as well as farmers and other private individuals.

TGS Baltic’s team consisted of Associate Partner Aurimas Pauliukevicius and Associate Donatas Sliora.

TGS Baltic has advised venture capital fund Litcapital I on the buyout of 85 percent of shares in semiconductor laser company Brolis Semiconductors by the Brolis Group. Motieka & Audzevicius advised the buyers on the deal.

As a result of the transaction, the shareholders of the Brolis Group — company founders Dominykas, Augustinas, and Kristijonas Vizbaras, along with the Sviesos Konversija, Eksmos Investicija, and Latvia’s ARP Invest — became the sole shareholders of Brolis Semiconductors.

Litcapital I is a EUR 25 million development capital fund that was established in 2010 together with the European Investment Fund under the JEREMIE initiative. The fund invests in the development of small and medium private enterprises in Lithuania.

The TGS Baltic team consisted of Partner Marius Matonis, Associate Partner Aurimas Pauliukevicius, and Associate Giedrius Svidras.

The Motieka & Audzevicius team consisted of Partner Giedrius Kolesnikovas, Associate Rokas Jankus, and Legal Assistant Laurynas Ramonas.

Motieka & Audzevicius has assisted UAB Elektroniniu Pinigu Bite in obtaining an e-money institution license for activities in Lithuania.

Elektroniniu Pinigu Bite is an affiliate of UAB Finansu Bite, the operator of FinBee (a prominent P2P platform in Lithuania), and UAB Finansu Bite Verslui, an operator of FinBee Verslui, the first crowdfunding platform in Lithuania.

The firm reports that its services included “the coordination of the whole licensing process, including drafting of the licensing documents and liaising with the Bank of Lithuania.”

Glimstedt has advised UAB Asseco Lietuva, an information systems integration company, on its acquisition of Saikas UAB, which provides information technology solutions for financial accounting and insurance business management.

The transaction was completed in August 2017.

UAB Asseco Lietuva is an information systems integration company belonging to Asseco Group, which develops information systems, software and specialized software solutions for automating the processes of organizations. According to Glimstedt, “by acquiring the shares of UAB Saikas, the company has implemented one of the development strategies – to strengthen its position in the field of insurance software solutions.”

The Glimstedt team was made up of Partner Kestutis Jaskutelis, Associate Partner Ausra Maliauskaite-Embrekte, Senior lawyers Michailas Molis and Asta Macijauskiene, and Lawyers Daiva Cekanaviciene and Raminta Stravinskaite.

Cobalt has successfully persuaded Lithuania’s Supreme Administrative Court to reduce a fine imposed on client UAB Ministerium by the Lithuanian Competition Council from EUR 8000 to EUR 4000.

The dispute concerned a prohibited agreement between companies participating in a public tender and the lawfulness and justification of the fines imposed on them.

According to Cobalt, “the Supreme Administrative Court of Lithuania held that the fine imposed by the Competition Council did not meet the criteria of justice and reasonability. The court recognized that UAB Ministerium was neither the initiator nor active participant in the prohibited agreement, while the breach of competition law itself lasted for only eight days, so that it was fair to reduce the fine imposed on UAB Ministerium.”

UAB Ministerium is active in the field of public relations, media planning and placement, and event organizing services.

The Cobalt team was led by Partner Elijus Burgis with assistance from Associate Justinas Sileika.

Motieka &  Audzevicius has assisted listed company Lifland Gaming in its acquisition of 100% of shares in Baltic Bet – a betting services company in Lithuania.

According to M&A, “the transaction required deep insight into the gambling industry, including online gambling. We have prepared legal due diligence reports, coordinated financial and tax due diligence processes, and cooperated with financial brokers in order to swiftly implement the acquisition. The successful closing of the deal resulted in the buyer entering the Lithuanian online gambling market where, without any doubt, it will turn the tables and provide solid competition to current online gambling providers.”

Sorainen is advising Zurnalu Leidybos Grupe, the publisher of the popular Lithuanian magazines “Zmones”, “Laima”, “Ji”, and “Edita” and the operator of the portals Zmones.lt, Ji24.lt, Elaima.lt, and Shopspy.lt, on the transfer of its business to Media Bites.

According to Sorainen, “the parties signed a letter of intent at the beginning of September. Once the deal is closed, Media Bites will take over all employees, assets, obligations and contracts of ZLG, including shares in associated company Medipresa, which is also ZLG’s press and books distributor. However, ZLG will retain ownership of its subsidiary company Vertikali Medija.

Cameron Greaves, Chairman of the ZLG board commented that: “The new owners of our magazines and portals have significant previous experience in the media business. In our view it will seamlessly assume the publishing traditions and commitment to high quality which have been the cornerstones of ZLG’s business for nearly three decades, together with maintenance of a high reputation. They will also continue the program of modernization required in the ever-changing media market.”  

The Sorainen team is led by Co-Managing Partner Laimonas Skibarka and Associate Vytautas Sabalys.

TGS Baltic has advised Lietuvos Energija on its sale of shares in Duomenu Logistikos Centras to Telia Lietuva.

TGS Baltic reports that the sale, which started last November, should be completed at the beginning of 2018, after a concentration permit is obtained from the Competition Council.

Lietuvos Energija is a state-controlled energy group in the Baltic States. The main activities of the group include electricity and heat energy production, supply, trade in electricity and electricity distribution, trade in natural gas, natural gas distribution, and servicing in and development of the electricity sector.

Duomenu Logistikos Centras provides services of data transmission and data centers. The company operates seven data centers in four Lithuanian cities, and provides data transmission services both in Lithuania and abroad. With partners the company operates international data transmission networks Baltic Highway and Baltic Optical Network.

The TGC Baltic team consisted of Partner Marius Matonis, Associate Partner Dalia Tamasauskaite-Ziliene, and Associate Andrius Voska.

On 25 August 2017, the General Meeting of the Lithuanian Court of Arbitration appointed Magnusson Partner Evaldas Rapolas as a new member to its Board for a three-year term.

The Board of the Lithuanian Court of Arbitration is a collegial governing body which addresses the main issues of the Lithuanian Court of Arbitration.

Rapolas is a member of Magnussion’s arbitration and dispute resolution team. He is a lecturer at the Law Faculty of Vytautas Magnus University, a member of the Board of Kaunas Chamber of Commerce Industry and Crafts, and an arbitrator of the Lithuanian Court of Arbitration.

Sorainen has successfully defended the interests of Eurocash1 in a dispute involving a prohibited vertical agreement that lasted over eight years.

According to Sorainen, “an agreement was made among G4S and the three biggest banks in Lithuania. According to the agreement, the banks were obliged to buy cash-handling services exclusively from G4S. A complaint about the agreement was brought to the Competition Council by Eurocash1, which convinced the Council that G4S had violated the law. The Court confirmed the conclusions drawn by the Council and [upheld] the fine of EUR 2.7 million against G4S. In the opinion of the Council, the agreement infringed competition law. This conclusion was drawn at the beginning of the case, as well as after a reinvestigation by the Council by order of the Court.

Vytautas Labeckas, CEO of Eurocash1, was pleased with the result: “I am happy that we did not give up fighting for justice since the beginning of the process in 2009 but consistently worked towards this aim. Finally, yesterday the Court found a forbidden vertical agreement. I strongly believe that the losses incurred by Eurocash1 will be compensated.”

Sorainen Partner Daivis Svirinas, who led the firm’s team representing Eurocash1, commented on the case’s relevance: “This case has significant importance, for at least two reasons. Firstly, since the beginning of this case the opportunities for other cash-collectors to compete in the market significantly increased when the illegal agreement was terminated, even though the negative consequences are still being felt. What is also important to note is that the Court confirmed that the biggest players in the market cannot abuse their power to affect fair competition, and smaller players in the market cannot give up under pressure from bigger players. This is also a significant victory and an important point of note for players in other sectors, that one should fight for rights that are violated.”

Svirinas was assisted by Sorainen Senior Associate Monika Malisauskaite.