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White & Case has advised CEE Equity Partners Limited (CEEEP) on its acquisition of a majority stake in BKF University of Applied Sciences, a private higher education business in Hungary.

CEEEP is the investment advisor for the recently formed, USD 500 million China-CEE Fund, established by China Exim Bank in partnership with other institutional investors from Central & Eastern Europe to capitalize on investment opportunities in the CEE region. The first CEEEP investment in the region was the acquisition of a minority stake in Polish Energy Partners (reported on by CEE Legal Matters on July 31, 2014). In that transaction, the Fund was advised by Norton Rose. 

The White & Case team in Budapest that advised CEEEP was led by Partner Edward Keller and included Partner Rob Irving and Associates Zita Albert, Balazs Varszeghi, and Akos Mates-Lanyi.

“It was great to work with CEEEP, a growing client for White & Case, on its first investment outside of Poland,” said Keller. “The transaction was of particular importance as it was the first sizeable private equity investment in a higher education institution in the region.”

Update: Lakatos, Koves & Partners has announced that it advised BKF on the sale to CEE Equity Partners. LKT Managing Partner Peter Lakatos and counsel Ivan Solyom advised the sellers on the negotiations and conclusions of the sale. Lakatos,commented: “We were pleased to work for the selling shareholders on this exciting transaction. The transaction showcases Budapest as a ‘know how hub’ and the growing levels of Chinese interest and investment in Hungary.”

Goltsblat BLP, the Russian practice of BLP, has announced that Varvara Knutova has moved to the firm from the Pepeliaev Group, where she spent the past four years, and will become Head of the Dispute Resolution Group.

Knutova started with Goltsblat BLP on December 1, 2014. At the Pepeliaev Group, Knutova was Head of the International Litigation and Arbitration Group, Dispute Resolution and Mediation Practice.

According to a statement released by the firm, Knutova “has extensive experience working with major national and international companies. She specializes in conflict of laws provisions, international trade regulation, arbitration and domestic dispute resolution, international commercial arbitration and alternative dispute settlement, disputes over jurisdiction, enforcement of foreign court judgements and foreign arbitral awards and bankruptcy procedures. [Knutova] has participated in enforcement of foreign court judgements in Russia (including on the principles of reciprocity and international courtesy) and awards of international commercial arbitrations.”

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Pekin & Pekin has confirmed that it worked with Norton Rose on the USD 1 billion project financing of a 950 MW combined cycle natural gas-fired power station in Kirikkale, Turkey, reported on earlier this week.

Pekin & Pekin’s Corporate/M&A team working on the deal was led by Kemal Serdengecti, and the Banking & Finance team was led by firm Managing Partner Ahmed Pekin.

Wolf Theiss has advised CTPartners Executive Search, a NYSE-listed executive search firm, on its acquisition of the Austria-based Neumann group. The transaction involves Neumann’s offices in Germany, Austria, Switzerland, and its operations across much of Eastern Europe. The Viennese Frotz Riedl law firm advised the Neumann group.

CTPartners is a leading global executive search firm with 30 offices in 18 countries. With the acquisition, CTPartners increases its presence in key German-speaking markets, including in Germany itself (CTP has its sole German office in Frankfurt). According to a Wolf Theiss press release, “Neumann focuses on several key industries that complement CTPartners’ target practice areas including: Industrial, Consumer, Life Sciences, Technology, Professional Services, and Financial Services.”

Wolf Theiss’s advice was provided by Partner Horst Ebhardt and Counsel Hartwig Kienast, assisted by Associate Johanna Freudensprung, Senior Associate Walter Poschl, Counsel Roland Marko, and Associate Jiayan Zhu. The Frotz Riedl team advising Neumann was led by Paul Schorgofer.

According to CTPartners’ CEO Brian Sullivan, “this transaction is consistent with the growth strategy to expand the CTP global footprint. Acquiring one of Europe’s leading executive search brands significantly benefits CTPartners’ global clients. Neumann has been established in Europe for over 40 years as a premier provider of senior-level executive search and leadership.”

Partners at Locke Lord and Edwards Wildman Palmer have approved combining the two firms effective January 10, 2015.

The only office either firm has in CEE is Edward Wildman’s office in Istanbul, where it is affiliated with the Turkish Ismen-Gunalcin Law Firm. Partner Ted Cominos, who manages the firm’s operations in Turkey, commented to CEE Legal Matters: “We are excited about this opportunity, as the combined firm will have more than 1,000 lawyers in 23 cities around the globe. Our office in Istanbul has a focus on private equity and cross-border transactions and serves a large region encompassing Central & Eastern Europe, the Middle East, and northern Africa, which will nicely complement Locke Lord’s strengths in energy, private equity, and other practice areas. The combined firm will offer a distinctive focus on the middle market, offering clients an extremely strong middle market offering across a broad range of practices, industries, and geographic locations around the world.”

The new firm will operate as Locke Lord Edwards, and will have gross revenues of approximately USD 675 million. Jerry Clements will serve as Chair of the combined Firm. Alan Levin, who currently serves as Managing Partner of Edwards Wildman, along with Locke Lord’s Dan Schlessinger and Bill Swanstrom, will serve as the three Vice Chairs of Locke Lord Edwards.

A statement posted on the Edwards Wildman website includes a statement from Clements, announcing that: “This combination will enhance our position in the top tier of U.S. law firms and significantly strengthen our position and product offerings in the middle market. It will allow us to brand that identity in the global marketplace with a major presence in the Northeast and a stronger footprint in the Midwest, West Coast and Southeast regions of the United States, as well as in Asia. This combination appropriately propels us into the future with an exceptionally fine group of lawyers in important practice areas, sectors and geographic areas where we want and need to be in order to best serve our clients. We share the same vision and strategy, and now will work together across all markets.”

According to that same statement, “internationally, the combination will strengthen the Firm’s presence in Asia with offices in Hong Kong, Istanbul, and Tokyo. London will continue to be an important focus of the combined Firm and one with anticipated growth as a gateway to international business.”

Locke Lord was established in 1891 and grew over the past 100-plus years nationally and internationally through strategic lateral hires and mergers in 1987, 1999, and 2007. Edwards Wildman traces its roots back to 1880.

Lawin has acted as joint counsel for Viru Keemia Grupp (VKG), a leading Estonian oil shale mining consortium, and a syndicate of Estonian and Scandinavian banks, in the entrance of the EBRD into VKG’s existing syndicated financing arrangements.

The financing involves the largest syndicated financing arrangement ever to be provided within Estonia: a total amount of around EUR 450 million. The facility provided by EBRD is intended to finance an environmental upgrade and energy efficiency improvements for VKG’s operations. The funding will support a major investment program by the company aimed at increasing its capacity to produce liquid fuels from oil shale through the construction of two oil production facilities.

Lawin as joint counsel negotiated the loan documentation as well as inter-creditor arrangements between the existing syndicate of banks and the EBRD. Allen & Overy’s London office assisted Lawin on English law aspects of the transaction. The Lawin team consisted of Partner Marina Tolmatshova and Associate Kristjan Kotkas.

Sorainen Belarus has advised Russian Railways in connection with the creation of the United Transport & Logistics Company (UTLC), which is completed together with the national railway companies of Belarus and Kazakhstan for the transport of containerized cargo within the Common Economic Space, including transit between Europe and Asia.

According to a statement released by Sorainen, “formation of UTLC is one of the largest projects in the emerging Eurasian Union of Russia, Kazakhstan, and Belarus.  UTLC is to invest over USD 6 billion in rolling stock, containers, terminals, and IT infrastructure by 2020. This will allow the total cargo turnover of the joint venture to reach 4 million twenty-foot equivalent units by that year.”

The Sorainen team advised Russian Railways on Belarus law-related issues relating to the UTLC corporate structure and arrangements between shareholders, regulatory aspects affecting Belarusian Railways’ participation in the project, and other regulations relevant to the project. The team was led by Partner Maksim Salahub.

Image source: bellena / Shutterstock.com

Dentons has acted as legal counsel to Starwood Capital Group, the global private investment firm, on its first investment in Krakow – the acquisition of Quattro Business Park from Grupa Buma, a local Polish developer.

Built between 2010 and 2014, Quattro Business Park is a modern office complex comprising four 14-story buildings totaling circa 500,000 square meters of gross leasable area. The firm describes the complex as “virtually 100 per cent occupied with tenants including a number of big-league companies, including Google, FedEx, and Samsung.”

The Dentons team was led by Warsaw-based Real Estate Partner Maciej Ryniewicz, supported by Associates Krzysztof Marzynski and Marta Wozniak. Ryniewicz commented that: “Following our assistance to Starwood Capital Group earlier this year in entering the Polish market with the acquisition of Ghelamco’s office portfolio in Warsaw and Katowice (reported on by CEE Legal Matters on August 29, 2014), we are pleased to have now supported Starwood again in expanding its presence to Krakow.”

Pawel Debowski, the Chairman of Dentons’ European Real Estate Group, believes the deal signifies an increasing interest in Polish Real Estate. “After long going unnoticed, Polish regional markets are now coming onto the radar of international property investors,” he said. “This year Krakow may have the highest volume of transactions amongst all major regional cities in Poland. The demand for office space there is increasing and we were happy to see Starwood tapping into this trend.”

Raidla Lejins & Norcous has provided legal advisory services to the Norwegian company Hoegh LNG regarding the Klaipeda liquefied natural gas (LNG) terminal project, advising it on matters related to the FSRU Independence, a South Korea-built LNG carrier designed as a floating LNG storage and regasification unit to be used as an LNG import terminal in Lithuania.

According to an RLN statement, the project, which following the completion of construction has now entered the operational phase, “represents a historic milestone of national significance for Lithuania, ensuring alternative gas supply to Lithuania and enhancing energy independence and security both nationally and across the Baltic Region.”

The FSRU Independence can store 170 000 cubic meters of natural gas and is expected to supply all the natural gas required by Lithuania, making the country independent of natural gas from Russia.

The carrier was built by Hyundai in South Korea, and it arrived at Klaipeda in late October, 2015, after a five month cruise.

The Klaipeda LNG terminal — the first such terminal in the Baltic states — consists of the FSRU Independence, the jetty, and the pipeline. The terminal will serve as an alternative to the only currently available option of importing natural gas through pipelines from Russia. Natural gas will be delivered to the terminal by gas carriers. The LNG terminal was officially launched on December 3, 2014. According to RLN, with its launch, “Lithuania is the first in the Baltics to have secured an alternative source of gas supply.” 

Raidla Lejins & Norcous advised and supported Hoegh LNG in obtaining security for project financing purposes, arranging for operation of the local office and lease of premises, and on employment and tax law matters. Extensive legal advice on aspects related to the arrival of the FSRU Independence included advising on immigration law matters, the application of a visa-free regime for workers, and obtaining work and residence permits for officers and workers on board the vessel.

Raidla Lejins & Norcous also assisted Hoegh LNG in dealing with the National Labour Exchange, the Klaipeda Territorial Labour Exchange, the Migration Department, the Ministry of Foreign Affairs, and the State Border Guard Service. 

The firm’s team was led by Managing Associate Auerys Sliavas. Managing Associate Maksimas Saveljevas and Tax Adviser Rokas Daugela also advised in the matter. 

Sorainen Belarus has advised Bank of Moscow, a member of Russia’s VTB Group, on the sale of its Belarusian subsidiary, Bank Moscow-Minsk, to the Belarusian state.

The state was represented in the transaction by the National Bank of Belarus and government-owned Paritetbank, which respectively acquired 99.75% and 0.25% shares in Bank Moscow-Minsk. Sorainen describes the transaction as being “the most notable deal in the Belarus banking sector in 2014.”

Sorainen advised on regulatory and tax aspects of the transaction, as well as performing a review and amendment of transaction documents, and supporting the client at closing. The team consisted of Partner Maksim Salahub, Senior Associate Ann Laevskaya, and Associate Viktoryia Mikhnevich.