CMS has advised Poland's Local Government Investment Fund on its acquisition of 45% shares in Tarnobrzeskie Wodociągi sp. z o.o., a water supply company in Tarnobrzeg, Poland. Tarnobrzeskie Wodociągi and the Municipality of Tarnobrzeg were advised by Domanski Zakrzewski Palinka.
The Local Government Investment Fund operates on behalf of the Polish Development Fund in order to support local government investments. According to CMS, “the fund is a capital investor in municipal companies, in particular, those which carry out public utility tasks, as well as local government tasks in maintaining and developing water and sewage infrastructure, transport infrastructure, social infrastructure, as well as waste management, public transport, heating, and healthcare.”
According to DZP, "as part of the transaction, the fund concluded an investment agreement with the Tarnobrzeg Commune and Tarnobrzeg Waterworks, based on which the parties agreed on the terms of the fund's investment and the sale of up to 45% of its shares under two tranches to its benefit. As a result of these actions, the fund will become a minority, passive shareholder of the company. Pursuant to the investment agreement, it will not affect the day-to-day management of the company and in the perspective of about 20 years, as a result of the redemption of the fund's shares, the local government will again become the only shareholder."
The CMS team in Warsaw included Partner Marcin Bejm, Senior Associate Mikolaj Markiewicz, and Associate Piotr Galazka.
The Domanski Zakrzewski Palinka team included Partner Tomasz Darowski and Senior Associate Beata Cieszynska.
