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bpv Grigorescu Stefanica has advised Otto Broker de Asigurare on the EUR 4 million investment it attracted from the private equity firm The Foundations 1.0 SEE (TF1). The private equity firm was advised by Bulboaca & Asociatii.

Otto Broker de Asigurare was first established in 2001 under the name Total Advisor. At its founding, the company offered insurance brokerage services in both the retail and corporate sectors. The rebranding of the company in 2008 marked its separation into two divisions: corporate and retail.

TF1 is a regional private equity investment fund backed by the European Investment fund, the EBRD, and other specialized investors.

According to bpv, this is the first private equity investment in the insurance brokerage market Romania and TF1’s first investment in the country. The stated aim of the investment is to help the Otto Broker de Asigurare become a dominant player in the insurance brokerage market. This was the first private equity transaction in the field of insurance brokerage.

According to a bpv statement, “the investment is yet another confirmation of the fact that the insurance brokerage market in Romania is becoming increasingly sophisticated and the local players are looking to strengthen or consolidate their positions in an extremely competitive environment.”

The bpv team advising Otto Broker de Asigurare was led by Managing Partner Catalin Grigorescu. The Bulboaca team assisting TF1 was led by Cosmin Stavaru, Partner and Head of M&A.

Tark Grunte Sutkiene (TGS) has advised Affidea (formerly known in Lithuania as Medea) on the merger of four of its group companies in Lithuania into a single entity. The process — which involved the merger of three subsidiaries into one parent company — simplified the group’s structure as well as making its administration and corporate management more effective.

Affidea, which operates in 14 countries, is one of the largest healthcare investors and operators in Europe. According to TGS, because the group provides radiological diagnostic, clinical laboratory, and cancer treatment (radiotherapy) services, the project was especially complex, “since governmental bodies, hospitals, and other entities having relations with Affidea group companies in Lithuania had to be involved and licenses and certificates re-issued in a timely manner.”

The TGS team advised was led by Associate Partner Deimante Korsakaite, with Associate Andrius Voska working on corporate matters, and Senior Associate Andrej Rudanov and Associate Inga Mazvilaite overseeing regulatory issues.

Egorov, Puginsky, Afanasiev and Partners (EPAM) has won a tender to represent the interests of the Severnaya Verf (Northern Shipyard) shipbuilding plant in St. Petersburg, which is part of the United Shipbuilding Corporation.

According to the technical requirements of the tender, Severnaya Verf required “comprehensive legal support in foreign courts and arbitration in connection with non-foreign supplier of its contractual obligations, as well as in connection with [a] bank guarantee.”

Severnaya Verf has produced both naval and civilian ships, though it was founded in the early 1900s exclusively for military shipbuilding. It was formerly known as Soviet Shipyard No. 190, and between 1935–1989 as the Zhdanov Shipyard.

Image Source: Olga Popova / Shutterstock.com

CMS has advised long-standing client Asbud Group on the acquisition of land for development in Warsaw. The property developer plans to build about 1,100 apartments at ul. Grzybowska 85 and ul. Karolkowa 28.

The Asbud Group is a real estate developer with 18 years’ experience on the Warsaw real estate market. The Group’s investments include Karolkowa Business Park, with a total rentable area of 18,500 square meters, and nearly 1,100 apartments offered as investment in the Young Zoliborz (Mlody Zoliborz) development in Zoliborz and the Flora development in Bialoleka. Asbud plans to start selling the first apartments at ul. Grzybowska 85 and ul. Karolkowa 28 in the second quarter of 2016.

“The last few months confirm the significant recovery in the housing market, which has encouraged developers to start new projects,” said CMS Partner Przemyslaw Kucharski. “The principal reason for the growth in this segment of the real estate market is the country’s good macroeconomic situation, and consequently, an increase in domestic demand. Low interest rates, banks’ willingness to lend and the continued interest in the Apartments for the Young scheme (Mieszkanie dla Mlodych) have had a significant impact on sales volumes. The acquisition of two attractive areas for investment confirms not only Asbud Group’s position as one of the fastest growing residential developers in Poland, but also the large potential market for housing in our country.”

CMS advised on the legal status of the properties and negotiated the transactions, as well as providing ongoing advice in the process of development. The firm’s team was led by Kucharski, supported by Senior Associate Mateusz Tomicki and Lawywer Marcin Pasik.

The Allianz Group has announced that Johannes Turk joined the company on September 1 to take on the role of Head of Legal for the group in Austria.

He succeeded Eva Pottler, who held the role since September 2012, who moves to an undisclosed role with the company. 

A law graduate of the Wien University and an MBA holder from the Imadec University, Turk previously worked for 10 years for Skandia as its Head of Legal & Compliance and Compliance Officer. Prior to that he worked for Skandia Invest Services and Schoenherr. 

According to an Allianz Group press release, in his new role, Turk will be responsible for the approximately 20 companies that make up the Allianz Group. His responsibilities include ensuring compliance with the regulatory framework, contract negotiations, legal support of departments in projects and business cases, and general in-house legal advice.

Image Source: allianz.at

Romanian lawyer Ernest Virgil Popovici founded Popovici & Asociatii in 1995, as soon as Romanian law permitted incorporation of professional partnerships. In 2002, Florian Nitu joined the firm as Managing Partner, and five years later the firm changed its name to Popovici Nitu & Asociatii.

The firm continued to expand, and in 2010 it launched PNSA Tax — its autonomous legal tax advisory business, in a joint venture with former Big Four senior tax managers. In 2012, the International Arbitration Practice Group is set up distinctively, which now, together with the firm’s impressive Litigation Practice, forms one of the largest dispute resolution teams in the country.

In October of this year, Popovici Nitu & Asociatii became Popovici Nitu Stoica & Asociatii when it promoting Corporate M&A lawyer Bogdan Stoica to named partner (reported on by CEE Legal Matters on October 1, 2015). Stoica also serves as Deputy Managing Partner.

As it celebrates its 20th anniversary, PNSA consists of over 80 lawyers and counsels providing excellent service. Founding Partner Ernest Popovici was kind enough to share his thoughts with us.

E.V.P.: Popovici Nitu Stoica & Asociatii has provided legal assistance on at least 150 major projects, amounting to well above EUR 15 billion of aggregate investment value, both greenfield and M&A, public and private, or dispute resolution assignments. We have been also involved in a significant number of regulatory and institution building projects. 

But beyond our track record of success, Popovici Nitu Stoica & Asociatii stands as a team of true professionals, sharing solid values such as top-notch expertise and loyalty to our clients, innovation, and commercial awareness. We’re proud of our team of over 80 lawyers, many of whom have spent their entire careers with our firm.

M.H.: At the very beginning it was very difficult to convince domestic clients to work with a foreign lawyer, not in the least because I was the first one there. They also found it difficult to understand the importance and duty of confidentiality, so competitors in business were very reluctant to instruct me. I would say Serbian companies – as in Serbian-owned – are much more likely to work with domestic lawyers. They have probably been with them from the start, as sole practitioners/friends and just stick with them.

E.V.P.: It was truly a team effort. Within a legal practice nothing works in a sustainable manner without a reliable team, a proper organization ethos, and hard work. A strong and long-term commitment to these principles was expected at all levels – Partners, Associates, and support staff – with no exceptions. 

Mobility was also a must, and our team has benefited from plenty of it. Looking at the business travel schedule of my colleagues the other day, I noticed that all European capitals were there, from Paris to London, from Vienna to Frankfurt, Geneva, and Brussels. I find this to be natural as business is becoming more and more global. At the same time, personally, I have pursued my adopted French nationality and the French community, and, although I spend a lot of time in my Bucharest office, I do work abroad a lot.

E.V.P.: Immensely. By all standards. First, it is the IT that has changed the structure of the service and this remains an ongoing process. What used to be my lawyer’s briefcase with files and statutes is now a laptop bag; I am changing smartphones constantly as new software is always needed. Basically, business went global in these past 20 years, and so has the legal profession. And we are constantly adapting to it and I hope that we will always stay at the forefront. 

E.V.P.: I clearly see a consolidation process with maybe 7-8 law firms, asserted as the big firms or the top tier, handling the major projects. But there is a lot of movement in the second tier market, where one may see many new players, numerous mergers and take-overs, partnerships, etc. And finally, there is already a market for the niche firms, specialized one-sector or one-industry boutiques that run notable assignments.

E.V.P.: Foreign direct investment, definitely. We have now conditions set for a major revival of investment interest for Romania. Strategically, institutionally, commercially, and legally. We will thus see soon major projects in Infrastructure, Agribusiness, Real Estate, IT & Telecommunications, and in the Energy field. 

Additionally, a new M&A wave is on the horizon, workouts and sales of NPL portfolios will complete, and fresh capital will be infused in the economy. As a local independent firm, we will also pay particular attention to the Dispute Resolution and International Arbitration Practices.

E.V.P.: We, at PNSA, will stick with the values and principles we embraced at the outset, 20 years back. We are a local, independent law firm. We see the team as our essential motor for development and growth. We believe in proper and competent, state of the art legal expertise and we seek to strike a good balance between people’s and the firm’s agendas. 

As to the legal profession’s future, I would say that we are witnessing epochal changes, not only locally, but globally, which would probably yield structural modifications. There is an inherent fragmentation here; we will soon see new bodies of practices claiming autonomy, not only barristers and solicitors, but also arbitration, competition/antitrust, legal tax lawyers, etc.

E.V.P.: I think it is their time for better engagement with the profession and civil society in general. Younger lawyers should get more active, voice their concerns, and act in the public arena. We need their new spirit, novel attitudes, knowledge acquired in times of open society and free markets, throughout these 20 years we are speaking about.

November 6, 2015 saw the launch of Bierc Siwik & Partners: a new boutique in Warsaw that will focus on real estate and construction, public procurement law, infrastructure, and energy.

The two co-founders and Managing Partners of the new firm are Artur Bierc and Robert Siwik. 

Bierc was previously the Founder and Managing Partner of AB LEGAL – an independent full-service law firm located in Warsaw that he set up in 2008. His prior experience includes working as an Attorney at Law with BPH TFI SA, and as a Lawyer with P. Soroka, M. Kedzierska, P. Skoworodko, I. Soroka – Notariusze and with Soroka Radcy Prawni. He has also been a Board Member of several companies: REF Okecie SA, RTW Sp. z o.o., REF Sp. z o.o., and FSN Sp. z o.o.

Siwik was an Associate with Jara Drapala & Partners from January 2009 to September 2015, preceded by one year as an Associate with e|n|w|c and one year in the same role with Kwasnik i Glowacka Radcowie Prawni. Siwik is the co-founder and a Member of the Management Board of the Polish-Austrian Lawyers Association (PALA) – a bilateral association open to all lawyers from Poland and Austria with a specific interest in the other’s legal system. Since 2014 he is also the Chairman of the Public Procurement Commission at the Polish – German Chamber of Industry and Commerce. Siwik’s clients include the Saferoad Group, Porr Polska Infrastructure, and the RMA Group.

Siwik commented: “Our new law firm will combine the depth of experience and training of traditional, ‘big firm’ lawyers with the cost-effective service and flexibility of a modern boutique. We act for public contracting entities and bidders, and have a particular focus on the infrastructure, energy and real estate sectors.” 

ODI Law has advised Adria Airways — Slovenia’s national airline — on its businesses cooperation with the Nordic Aviation Group (NAC), an airline newly established by the Estonian Government.

The transaction coincides with the initiation of bankruptcy proceedings of the national Estonian airline Estonian Air, which ceased to fly from Tallinn on Saturday after that day’s decision by the European Commission that Estonia’s provision of EUR 85 million to the airline constituted impermissible state aid.

To assist NAC as the company ramps up, Adria began flying from Tallinn to several destinations in cooperation with NAC the next day — November 8, 2015 — and it has agreed to provide Nordic with full commercial and operational support and to operate all flights using its own aircraft or leased aircraft. According to Mark Anzur, the CEO of Adria Airways, the project is to last between 12 and 18 months and is expected to have important financial effects for Adria, which is hoping to increase its passengers by more than 50%.

ODI’s team was led by Managing Partner Uros Ilic and Senior Associate Suzana Boncina Jamsek.

Nordic Air Group relied on its in-house counsel on the deal.

Image Source: Vytautas Kielaitis / Shutterstock.com

Sorainen’s Latvian office has advised Minsterejas Projekti on its purchase of several properties in Riga to be used for manufacturing, at a combined purchase price of EUR 750,000.

Jurij Loboda, CEO of Minsterejas Projekti, commented: “On behalf of company management, I would like to compliment the Sorainen team members on the professional performance of their duties during the transaction process and thank them.”

The Sorainen team consisted of Associate Jorens Jaunozols and Senior Associate Jevgenija Andronova.

White & Case, working together with the Czech investment banking boutique Genesia, has advised the owners of Czech Republic-based CGS Holding on its acquisition by Swedish industrial giant Trelleborg. Linklaters advised Trelleborg on the deal. The total cash consideration amounts to approximately EUR1.16 billion (CZK 31.6 billion) on a cash and debt free basis.

CGS is a leading supplier of specialty tires and engineered polymer solutions. The company employs approximately 6,500 people, is headquartered in the Czech Republic and has 11 production sites in Eastern Europe, one in the United States, and one in Mexico. The group includes subsidiaries Mitas, Rubena, and Savatech. Mitas accounts for approximately two thirds of group sales and has strong mid-market specialty tires brands with a strong position in agricultural tires. The speciality tires offering is complemented by the Rubena and Savatech engineered polymer solutions businesses. Rubena and Savatech develop and manufacture a broad range of engineered polymer products, including polymer seals, polymer sealing profiles, speciality conveyor belts, and products from engineered fabrics.

According to White & Case, “with the acquisition of CGS, and its subsidiary Mitas, Trelleborg is establishing itself as a global leader in agricultural tires and reinforcing its leading position in industrial tires. The acquisition of CGS’ other industrial polymer businesses will enhance Trelleborg’s leading positions in several of its existing business areas.”

Prague-based White & Case Partner Michal Smrek, who co-led his firm’s team, described the deal as “one of the most significant M&A transactions among private owners and strategic investors in CEE this year.” 

Prague-based White & Case partner Damian Beaven, who co-led the team with Smrek, said: “Over the past eight years, White & Case and Genesia have supported CGS on acquisitions and greenfield investments in North America, Slovenia, and Serbia. CGS is another success story of a Czech business growing to become a global player, and from a White & Case perspective it’s exciting to play an important role in that journey.”

In addition to Smrek and Beaven, the White & Case team included Partners Lennart Pettersson, Alena Naatz, Ivo Janda, and Ales Zidek, with the support from Associates Jan Stejskal, Jakub Mencl, Magda Olysarova, and Jan Parik. 

Linklaters did not reply to inquiries about its work on the deal.