Category: News

Ilyashev & Partners is advising Mozyrsalt OJSC, producers of evaporated salt, in an anti-dumping investigation involving white evaporated salt imported from Belarus to Ukraine, packaged in 25 to 50 kilograms bags and containers of up to 1000 kilograms.

The investigation was launched in October 25, 2017 by the Interdepartmental Commission on International Trade on the basis of a complaint by Russol-Ukraine LLC.

Founded in 1982, Mozyrsalt is an associated company of Belarus State Concern Belgospischeprom. The company produces evaporated salt with various mineral supplements, tablet salt, and salt-containing additives. It supplies its products to 19 neighboring and non-CIS countries. 

TGS Baltic has advised the Fluid Handling Solutions business group of Axel Johnson International on its acquisition of Bahr Pump OU in Estonia, Pumptechnique SIA in Latvia, and Flow Technologies UAB in Lithuania.

According to TGS Baltic, all three acquired companies specialize in supplying fluid handling equipment, advanced systems, and service to end-users and contractors. Some of their key products include pumps, loading arms, actuators, and hydrocarbon metering, primarily for the petrochemical, chemical, food, and power generation industries.

The TGS Baltic team advising AxFlow included Estonian Associate Partner Kadri Kallas and Senior Associate Meree Punab, Latvian Partner Andra Rubene and Senior Associate Nauris Grigals, and Lithuanian Associate Andrius Voska.

JPM has advised Constellation Software Inc. on the acquisition by its Vela Operating Group division and subsidiary Aquila Software of the IN2 Group.

According to JPM, IN2, “was founded by the Croatian software group in 2009 and is known for its solutions in the public sector, insurance, pension and investment funds and ERP and BI solutions. 

Founded in 1995, Constellation Software is headquartered in Toronto. IN2, which is headquartered in Zagreb, Croatia, provides software solutions in the government, finance, insurance, healthcare, corporate, and other industries in the Adriatic region.

JPM did not reply to an inquiry about the deal.

Editor’s Note: After this article was published CEE Legal Matters learned that the JPM team consisted of Senior Partner Jelena Gazivoda and Partner Nikola Djordjevic.

Weinhold Legal has advised the Sarantis Group on its EUR 8.5 million acquisition of Slovak and Czech cosmetic brand Indulona. The sellers were advised by Kinstellar Bratislava.

Weinhold Legal describes Indulona as “a well-known, award-winning cosmetics brand boasting a 70-year successful historical presence in the Czech/Slovak market,” and it reports that “it is the most popular and number one selling product within the hand care category in both markets.” The Sarantis Group signed an agreement for the acquisition of the 100% of the share capital of Slovakian company Saneca Trade S.R.O and its Czech subsidiary, Saneca Trade CZ S.R.O., which distribute Indulona products in the two countries.

According to a Sarantis press release, this acquisition, completed within the context of the group’s strategic growth plan, further enriches the group’s brand portfolio, reinforces its position as a leading consumer products company, and supports the group’s geographical footprint in its territory.

Weinhold Legal’s team was led by Partner Daniel Weinhold, working in cooperation with Of Counsel Dusan Kmoch, Managing Attorney Tomas Cermak, and other Slovak and Czech lawyers from the firm.

Editor’s Note: After this article was published Kinstellar confirmed that it had advised the sellers. Its team consisted of Partner Viliam Mysicka and Junior Associate Marko Ernek.

TGS Baltic has represented Credit Value Investments and the funds managed by it on their investment in bonds of AB Civinity. AB Civinity was reportedly advised by PwC.

The nominal value and the issue price of the issued bonds is EUR 11 million, while the nominal value and the issue price per bond is EUR 100,000. The bonds will be redeemed after four years.

Credit Value Investments is an independent Polish investment company operating in Central and East European financial markets. The company has implemented over 500 transactions and the value of managed assets exceeds EUR 750 million. This transaction is the company’s first investment in Lithuania.

AB Civinity manages companies administrating and maintaining residential and commercial buildings in Lithuania and Latvia.

TGS Baltic’s team consisted of Lithuanian Partner Vidmantas Drizga, Associate Partner Ieva Dosinaite, and Senior Associate Mantas Gofmanas, along with Latvian Partner Andra Rubene and Senior Associate Inese Rendeniece.

PwC did not reply to our inquiries.

Sorainen, working with DLA Piper, has advised insurance broker company Aon Baltic on its acquisition of Balto Link. The sellers were advised by Glimstedt.  

Aon Baltic is an insurance broker company operating in Estonia, Latvia, and Lithuania. The company belongs to the Aon Group, which operates in 120 countries world-wide and has 50,000 employees.

Balto Link is also an insurance brokerage company in the Baltics, specialized in providing services to corporate clients and in e-commerce with insurance products.

In an Aon Baltic press release, Zilvinas Petrauskas, CEO of Aon Baltic, commented: “After this acquisition we are planning to increase investment in technologies, which will help to service our clients and to attract new talents in the most effective way. Moreover, with e-commerce platforms development we are planning to strengthen sales to private clients in all Baltic States.”

Robertas Saltis, Managing Director Baltics of Balto Link, said: “Joining Aon Baltic and becoming part of a global firm will enable us to provide enhanced solutions to our clients. We believe that strong business synergies between the two firms will bring opportunities and benefits to colleagues and clients alike.”

The acquisition is expected to be completed in six months, after which Aon Baltic will have 300 employees.

The Sorainen team was led by Partner Tomas Kontautas and included Partner Sergej Butov, Counsel Mantas Petkevicius, Senior Associates Dalia Augaite and Deimante Pagiriene, and Associates Artur Drapeko, Indre Peledaite, and Laura Ryzgelyte.

The Glimstedt team included Partner Andrius Ivanauskas, Associate Partner Mindaugas Jablonskis, Senior Associates Michailas Molis, Edvard Gasperskij, and Jurgita Zakarauskiene, and Associates Domantas Gudonis and Jonas Salna. The firm’s team in Latvia was led by Partner Agnese Medne, and in Estonia by Partner Leho Pihkva.

DLA Piper did not respond to our inquiries on the matter.

Editor’s Note: On November 26, 2018, Sorainen announced that the merger had finally been completed on November 2, 2018.  

Harrisons has provided Serbian advice to the EBRD related to its EUR 35 million loan to the Serbia and Montenegro Air Traffic Services LLC.

The Serbia and Montenegro Air Traffic Services Agency is the regional air traffic control service covering Serbia, Montenegro, and about 55% of Bosnia and Herzegovina. The funds will be used to finance part of the required upgrade program for Single European Sky compliance (hardware and software upgrades of SMATSA’s air traffic control system), and ultimately improve air navigation services in the two countries.

According to Harrison’s, “this comprehensive modernization program falls in line with the harmonization process of the European Common Aviation Area, which aims to make air services across Europe more affordable and efficient, for the benefit of passengers and other users of airspace.”

Ines Matijevic-Papulin, Head of Finance at Harrison’s, led the firm’s team, assisted by Senior Associate Jovan Cirkovic and Associate Aleksandar Jovicevic.

Taylor Wessing Bratislava has advised Martinus, s.r.o., the largest online book retailer and the second largest book retailer in Slovakia, on the acquisition of its competitor, the e-shop Gorila.sk, along with the Czech e-shop arara.cz, from Beyond Media, s.r.o. The Nozdrovicky, Suvert & Co. law firm advised the seller on the deal.

Martinus acquired both e-shops in mid-September. Gorila.sk continues to operate under the original brand, while arara.cz has been merged into Martinus’ Czech martinus.cz e-shop.

According to Taylor Wessing, Martinus’s “intention is to create a more effective and clearly laid-out model of online book retail and delivery, enabling a simpler and faster shopping experience for the customers.” The firm reports that, by means of the deal, “Martinus made a big step towards improving the retail and the standards of the book industry in Slovakia and the Czech Republic.”

Michal Mesko, the majority shareholder and managing director of Martinus, commented that “the acquisition of the e-shop Gorila.sk was a natural and interesting investment for us. It broadens our book portfolio and allows us to address a bigger group of readers in Slovakia, as well as abroad.”

The Taylor Wessing team consisted of Partners Juraj Frindrich and Radovan Pala and Associate Andrea Vancelova.

The NSCo team was led by Peter Nozdrovicky.

Editor’s Note: After this article was published Peter Nozdrovicky informed CEE Legal Matters that he had been supported on the deal by Nozdrovicky, Suvert & Co. Partner Peter Suvert and Associate Eva Woloszynova.

CMS has advised Poland’s PFR TFI on an investment in Lithuania’s UAB EMP recycling.

As part of the transaction, Foreign Expansion Fund, Closed-End Investment Fund of Non-Public Assets (FEZ FIZAN), which is managed by PFR TFI, took over 49% of shares in the company from Elemental Holding S.A., a Polish capital group that operates in the recycling industry in a number of countries in Central and Eastern Europe, as well as in Germany, Finland, the United Kingdom, Turkey, and the Middle East.

The Foreign Expansion Fund was established in order to help Polish companies invest in foreign projects. The Fund provides co-financing for foreign subsidiaries belonging to Polish companies. Polish companies may take advantage of financing in the form of capital, mezzanine financing and loans secured by assets of a foreign project, without recourse to the Polish company. The time horizon for the Fund’s investments is tailored to the specific features of a project and usually ranges from five to seven years. 

According to CMS, “the transaction will enable Elemental Holding group to allocate the funds obtained to planned acquisitions and further development. Elemental Holding will continue to manage the Lithuanian company, which constitutes an important element of the creation of a strong recycling group in Central and Eastern Europe and the Baltic States.”

The CMS team included Partner Jakub Marcinkowski, Senior Associate Olga Czyzycka, and Lawyer Michal Sowinski.

Editor’s Note: After this article was published CEE Legal Matters learned that Cobalt assisted CMS on Lithuanian matters related to the Polish Foreign Expansion Fund’s acquisition. The firm’s team was led by Partner Juozas Rimas and included Associate Mantas Juska. In addition, legal advice on the seller side was provided in-house by Maria Janicką, Head of Legal at Elemental.

Cobalt Estonia has advised BaltCap on the sale of 100% of its shares in Magnetic MRO to Guangzhou Hangxin Aviation Technology for EUR 43 million. The buyer was advised by Ellex.

Magnetic MRO is a full-service aircraft maintenance company headquartered in Tallinn. Closing is expected to happen at the end of March, after all regulatory requirements and other closing conditions have been fulfilled.

“During BaltCap’s ownership Magnetic MRO has grown from small regional player to a profitable global company,” stated Kristjan Kalda, the Chairman of the Supervisory Board of Magnetic MRO and Partner of BaltCap. “This is the largest exit transaction in BaltCap’s history and proves our ambition to create highly competitive Baltic companies. I would like to thank the fantastic team in Magnetic, this strategic move is definitely a huge leap for the company.”

In a BaltCap press release the CEO of Magnetic MRO, Risto Maeots, said: “Magnetic MRO management has been actively looking for opportunities to expand into Asia, the highest growth market in aviation. Hangxin’s location and service portfolio is complementary to Magnetic MRO, creating substantial synergies and new business opportunities. For the management Hangxin is a perfect match and we are thrilled to start working with their highly professional and energetic team.”

According to the same press material, Guangzhou Hangxin Aviation Technology is a privately-owned company providing aircraft component maintenance services, based in Guangzhou, Guangdong Province in China. Hangxin services components for over 20 aircraft types, and serves over 50 airlines in Asia, Middle East, Europe, and North America. 

“We are very pleased to welcome Magnetic MRO to the Hangxin team,” said Lv Haibo, Vice President of Hangxin, in BaltCap’s press release. Magnetic MRO and their team have developed a high-quality, reliable, customer-focused MRO business. We fully support the existing strategy and executive management team, and will support Magnetic MRO’s focus on continuing to deliver value to their existing customers as well as expanding global MRO presence.”

Cobalt’s work comprised conducting vendor LDD and advising the client in drafting and negotiating the transaction documents. The firm’s team included Partner Peeter Kutman, Senior Associate Karl Kull, and Associate Madis Reppo.

The Ellex team included Partner Risto Vahimets, Associate Lawyer Karl-Erich Trisberg, and Lawyer Anna Trine Raudsepp from Estonia, with the help of Associate Partner Robertas Ciocys from Lithuania.