CEE Legal Matters

Category: News

  • Sorainen Advises Nordcurrent on Blam! Games Studios Acquisition

    Sorainen has advised Nordcurrent, a Baltic game development studio, on its acquisition of Blam! Games Studios, a Ukrainian game development and animation studio. The value of the transaction was not disclosed.

    Established in 2009, Blam! Games Studios has been collaborating with Nordcurrent since 2014. The companies co-created several video games for PCs and mobile devices.

    The Sorainen team was led by Partner Sergej Butov. 

    Editor’s Note: After this article was published, Avellum announced that it acted as a Ukrainian legal counsel to Nordcurrent on the acquisition of Blam! Games Studios. The Avellum team was led by Partner Yuriy Nechayev with the support from Associates Andrii Gumenchuk and Sofiia Kostytska.

  • KSB, A&O, Paksoy, Boyanov & Co., and Tsvetkova Bebov Komarevski Among Firms Advising on Energo-Pro Eurobond Issue

    Kocian Solc Balastik, Linklaters, BLC Law Office, Paksoy, and Tsvetkova Bebov Komarevski have acted as legal counsels to Energo-Pro a.s. in its EUR 250 million Eurobond issue in London, advising on Czech, English, Georgian, Turkish, and Bulgarian law, respectively. The Joint bookrunners and the trustee were advised by Allen & Overy’s London and Prague offices, Tbilisi-based BGI Legal, Boyanov & Co. in Sofia, and Istanbul-based Gedik & Eraksoy.

    The Guaranteed Notes mature on May 4, 2024 and carry a 4.5 % annual coupon. The issue price is 100%. The Notes have been admitted to the Official List and to trading on the Global Exchange Market of the Irish Stock Exchange plc trading as Euronext Dublin. They are fully guaranteed on a joint and several basis by each of Energo-Pro Georgia Generation JSC, Energo-Pro Georgia JSC, Energo-Pro VARNA EAD and Resadiye Hamzalı Elektrik Uretim San.ve Tic. A.S.

    According to Energo-Pro, “the net proceeds will be used for repayment of existing Group indebtedness and general corporate purposes.”

    The Trustee Company is Citibank, N.A., London Branch that also served as a principal paying agent. The registrar bank was Citigroup Global Markets Deutschland AG. The joint bookrunners include BNP Paribas, Citigroup Global Markets Limited, and J.P. Morgan Securities plc. 

    Energo-Pro operates hydroelectric power stations in the Central and East Europe, and the Black Sea and Caucasus regions. Originally a Czech company, it expanded to Bulgaria, Georgia, and Turkey.

    The Boyanov & Co. team consisted of Partners Damian Simeonov and Alexander Chatalbashev, Senior Associate Georgi Drenski, and Associate Ivaylo Angelov.

    The Allen & Overy team included Partner Phil Smith and Senior Associates Peter Crossan, Petr Vybiral, Anne Low, and Michael Hossack.

    The Tsvetkova, Bebov, Komarevski team consisted of Partner Nikolay Bebov and Managing Associate Damyan Leshev. 

    The Paksoy team was led by Partner Sera Somay and included Associates Merve Kurdak Kurtdarcan and Beril Paksoy.

    Editor’s Note: After this article was published, Gedik & Eraksoy informed CEE Legal Matters that it has served as a legal consultant to joint book runners and trustees: BNP Paribas, Citigroup Global Markets Limited, J.P. Morgan Securities plc. and Citibank, N.A. on Turkish law. The Gedik & Eraksoy team consisted of Partner Hakki Gedik, Senior Counsel Umut Gurgey, and Associate Dilsah Gurses.   

  • Squire Patton Boggs Successful for Kosovo in EUR 380 Million ICSID Arbitration

    Squire Patton Boggs has successfully defended the Republic of Kosovo against a EUR 380 million investment treaty claim brought by German investor ACP Axos Capital GmbH.

    According to Squire Patton Boggs, the case was the first ever investment treaty case brought against Kosovo since it became an independent country in 2008.

    In its judgement of May 3, 2018, the International Centre for Settlement of Investment Disputes (ICSID) rejected all claims brought against Kosovo and ordered ACP Axos Capital to pay more than USD 2 million to Kosovo for fees and costs incurred by the country in defending against the claim.

    “The total value of the claim amounted to over 20 percent of the annual state budget of Kosovo. A loss would have had dire consequences for the country,” says Squire Patton Boggs Partner Luka Misetic.

    The Squire Patton Boggs team representing Kosovo was led by Partners Luka Misetic and Stephen Anway in New York, Rostislav Pekar in Prague, and Stephan Adell in Paris, and included Associates Mark Stadnyk in New York and Maria Polakova and Vladimir Polach in Prague. 

  • TGS Baltic Advises Bergs Timber on Acquisition of Norvik’s Operations in the Baltics and the United Kingdom

    TGS Baltic Advises Bergs Timber on Acquisition of Norvik’s Operations in the Baltics and the United Kingdom

    TGS Baltic has advised Swedish company Bergs Timber on its acquisition of Vika Wood and Byko-lat (Latvia), EWP AS and Laesti AS (Estonia), and Norvik Shipping (United Kingdom) from Icelandic Norvik hf. 

    According to Berg Timber, “the purchase price will be made up of 170 million newly issued shares in Bergs Timber as well as a cash payment of SEK 270 million.”

    Bergs Timber, founded in 1919, is a Swedish sawn and processed timber producer and seller which offers spruce and pine wood products and linseed oil treated timber, as well as by-products such as bark, cellulose chips, sawdust, splinters, dry chips, cutter shavings, briquettes, forestry waste, and hardwood chips. The company is active in three business areas: forestry services for forest owners, forest products, and timber preservation. 

    Norvik Timber Industries is a privately owned Icelandic forest industry company operating in Latvia, Estonia, Russia, Sweden, and the United Kingdom. Norvik Timber Industries is part of the Norvik Group. 

    TGS Baltic describes the deal, which is expected to close in the second quarter of 2018, as “one of the largest M&A deals in Estonia in the first quarter of 2018.”

    “We have now, for a couple of months, had the opportunity to get to know and evaluate Norvik’s timber operations. These companies are well managed and profitable with an engaged staff and quality products,” said Peter Nilsson, CEO of Bergs Timber, in a company press release. He added that, “I am convinced that the companies strengthen each other and that the acquisition is good both for our staff and our owners.”

    Jon Helgi Gudmundsson, Chairman of the Norvik Board, commented: “Since the sale of Broakulla to Bergs Timber we have been a large shareholder in the company. During this time we have experienced the strength and ambitions of the company and the company‘s executive management. We are confident that this transaction is the right way to further develop our companies, not least due to our and Bergs Timber’s management’s shared view of the importance of decentralized responsibility and the use of current existing brands.”

    TGS Baltic’s team included Partners Kadri Kallas and Andra Rubene, Associate Partner Nauris Grigals, Senior Associate Meree Punab, and Associate Kart Raud.

    TGS Baltic did not reply to our inquiries about counsel for sellers. 

     

  • Sorainen Advises Marketing Investment Group on Acquisition of Bogvila Stores in Lithuania and Latvia

    Sorainen Advises Marketing Investment Group on Acquisition of Bogvila Stores in Lithuania and Latvia

    Sorainen has advised the Marketing Investment Group on its acquisition of more than ten stores in Lithuania and Latvia from retailer Bogvila. The seller was represented by SGKA Legal. 

    MIG, a Polish retailer operating in the footwear and clothing market for over 25 years, has developed retail chains such as Sizeer, 50 Style, Symbiosis, and UP8. It currently provides consumers with products from well-known brands in over 300 stores Europe-wide, both through its own retail chains ‒ including e-commerce ‒ and via a wholesale distribution network.

    According to Sorainen, “this transaction will help the group further expand its retail chain in Lithuania and Latvia, where Bogvila is involved in sales of clothing and footwear by Adidas, Reebok, Nike, Puma, and other well-known brands.”

    Bogvila also operates stores under the SPORT Outlet and R&E SPORT brands. The transaction also involves the transfer of these store brands to MIG.

    The Sorainen  team was led by Partner Algirdas Peksys, assisted by Associates Laura Matuizaite, Lukas Vaisvila, Mantas Kuslys, and Zane Akermane.

    SGKA Legal did not reply to our inquiries.

     

  • D’Ornano and Team Leave Jeantet to Establish New CEE Firm

    D’Ornano and Team Leave Jeantet to Establish New CEE Firm

    Francois d’Ornano, together with almost the entire Budapest office of Jeantet, has left the French firm to launch the D’Ornano Partners law firm, with offices in Hungary, Serbia, and Romania.

    In addition to d’Ornano, the Founding Partners of D’Ornano include former Jeantet lawyers Amaury Chautard and Anna Maria Veres in Paris and Balazs Kutasi in Budapest, former Bondoc & Asociatii Senior Associate Cristina Gavrila in Bucharest, and Ana Maric in Belgrade. It is unclear what the affect of Maric’s joining will have on her role as Managing Partner of Belgrade’s MMD Associates law firm.

    The Budapest team moved to Jeantet with d’Ornano from Gide Loyrette Nouel in 2015 (as reported by CEE Legal Matters on October 21, 2015, and on November 3, 2015). Maric and Gavrila also worked with d’Ornano with Gide, with d’Ornano overseeing the firm’s Serbian and Romanian offices until Gide withdrew from those markets.

    D’Ornano Partners also announced that a Brussels office, “will be set up in the following months and will cover competition and EU-related aspects related to cross-border investments of our clients in France and the CEE region.

    Commenting on the departure of her colleagues, Jeantet Local Partner Ioana Knoll-Tudor told CEE Legal Matters that “Jeantet keeps a presence in Hungary and continues its development in the CEE/CIS region.” Indeed, while Knoll-Tudor was set to move to Paris (as reported on by CEE Legal Matters on September 20, 2017), she informed CEE Legal Matters that she will remain in the region to help develop the firm’s presence in CEE in parallel to her efforts to strenghten its international arbitration practice.

    Editorial Note: This article was corrected to reflect the fact that Francois d’Ornano had overseen the Gide Serbian and Romanian offices, not Cristina Gavrila as the article originally reported.

     

  • CMS, Freshfields, and Kirkland Advise on Partner in Pet Food Acquisition

    CMS, Freshfields, and Kirkland Advise on Partner in Pet Food Acquisition

    CMS and Freshfields have advised global private equity firm Cinven on the acquisition of Partner in Pet Food, a European pet food manufacturer, from Pamplona Capital Management. Kirkland & Ellis has advised Pamplona on the sale. 

    Headquartered in Hungary, Partner in Pet Food (PPF) has nine manufacturing operations across Europe, and it supplies pet food to traditional retailers, discounters, speciality pet retailers, and online specialists.

    The transaction follows Pamplona’s EUR 315 million acquisition of Partner in Pet Food from Advent International in April 2015, for which CMS advised the seller.

    The CMS team was led by London-based Partner James Grimwood and Kyiv-based Partner Graham Conlon, and included Senior Associate Valentina Santambrogio, Associate Jamie Burgess, and Trainee Solicitor Julian Goering.

    The Freshfields team consisted of London-based Partners Adrian Maguire, Victoria Sigeti, and Christopher Davis.

    Kirkland’s London-based team was led by Corporate Partners David Higgins, Gavin Gordon, and Andrej Wolf.

     

  • TGS Baltic Advises on Hotel Development Investment in Romania

    TGS Baltic Advises on Hotel Development Investment in Romania

    TGS Baltic has advised the four investors in Apex Holding Limited on shareholders’ and investment agreements related to its indirect management of Romanian companies that will be developing a four-hotel complex in Bucharest.

    The value of the investment project is EUR 85 million, and the construction of the hotel units is expected to be completed by 2022. The hotel complex will be managed on a franchise contract basis jointly with the largest international hotel chains, Marriot and Hilton Worldwide.

    Apex Holding Limited, a company established in the Republic of Cyprus, is controlled by Agile Finance, Gemini Grupe, Invefina, and Appex Alliance invest.

    TGS Baltic Associate Partner Aurimas Pauliukevicius and Partner Vidmantas Drizga advised on the conclusion of investment and shareholders’ agreements. Of Counsel Lauras Butkevicius represented the investors in obtaining concentration clearances in Lithuania, Latvia, and Poland. 

     

  • Freshfields, Boyanov & Co., and Allen & Overy Advise on Vivacom’s Senior Secured Notes Refinancing

    Freshfields, Boyanov & Co., and Allen & Overy Advise on Vivacom’s Senior Secured Notes Refinancing

    Freshfields Bruckhaus Deringer and Boyanov & Co. have advised Bulgarian telecommunications company Vivacom on the refinancing of its EUR 400 million worth of senior secured notes from a syndicate of more than a dozen financial institutions. The banks were represented by Allen & Overy. 

    According to a Vivacom press release, “the financial terms of the new financing are significantly more favorable to the company than those of the Senior Secured Notes, which would allow Vivacom to focus on its development program with further investments in network infrastructure and the quality of its services.” The company also noted that Moody’s Investors Service has recently upgraded the long-term credit rating of Vivacom to from B1 to Ba3. According to Vivacom, “the higher rating reflects the company”s solid performance and its position as a leading telecom operator in Bulgaria with high market shares in fixed-line business, a strong track record of growing mobile market share and revenues, as well as the expectations for further growth and development.”

    Freshfields’ Vienna-based English law finance team was led by Principal Associate Blair Day, and Boyanov & Co.’s finance team was led by Partner Damian Simeonov.

    Allen & Overy’s team included Partner Nicholas Clark, Senior Associate Sunny Wong, and Associate Lila Sujanani.  

    Editor’s Note: After this article was finished, Tsvetkova Bebov Komarevsky informed CEE Legal Matters that it had served as Bulgarian counsel for the U.S. Bank Trustees, the outgoing trustee, and security agent for the repaid noteholders. The firm’s team was led by Partner Nikolay Bebov and Senior Associate Viktoria Tzonkova. According to Nikolay Bebov, “back in 2013 our firm acted as local legal counsel for the banks that placed the EUR 400 million bonds, the first high-yield bonds from Bulgaria. At the time we acted, in addition to the underwriting banks, also for U.S. Bank Trustees, as now.”

     

     

  • Wolf Theiss, Herbert Smith Freehills, and Clifford Chance Advise on Lagardere Radio Assets Sale in CEE

    Wolf Theiss, Herbert Smith Freehills, and Clifford Chance Advise on Lagardere Radio Assets Sale in CEE

    Wolf Theiss and Herbert Smith Freehills have advised French media and publishing group Lagardere on the EUR 73 million sale of its central European radio businesses to Czech Media Invest. Clifford Chance advised Czech Media Invest on the acquisition. 

    According to Wolf Theiss, “the transaction was the first in a series of disposals that are part of the company’s strategic redeployment announced in March.” The sold assets were in Poland, the Czech Republic, Slovakia, and Romania.

    Lagardere shares are listed on Euronext Paris.

    Czech Media Invest, which is co-owned and managed by Daniel Kretinsky, has four daily titles, numerous magazines, online domains, and two printing plants, as well as a book publishing and press distribution.

    The Wolf Theiss team was led by Partner Jacek Michalski and included Associates Joanna Wajdzik and Anna Nowodworska in Warsaw, Partner Jan Myska and Associate Martin Kolacek in Prague, Partner Ileana Glodeanu, Senior Associate Mircea Ciocirlea, Associates Luciana Tache, and Costin Salaru in Bucharest, and Counsel Katarina Bielikova and Associate Vladimira Rostarova in Bratislava.

    The Clifford Chance team was led by Prague Managing Partner Alex Cook, assisted by Senior Associate Stanislav Holec. The team included Partner Laurent Schoenstein and Xavier Petet in Paris, Counsel Krzysztof Hajdamowicz and Trainee Zuzanna Potoczna and Aleksandra Wlaszczuk in Warsaw, and Counsel Mihai Macelaru, Associate Radu Costin, and Trainee Claudia Grosu in Bucharest.

    Editor’s Note: Clifford Chance announced that its Bucharest team was coordinated by Counsel Mihai Macelaru and Senior Associates Radu Costin and Ecaterina Burlacu. The team also included Partner Nadia Badea, Senior Associate Lavinia Nucu, Lawyer Bogdan Micu, and Trainee Mihnea Niculescu.