On June 20, 2017, CEELM reported that mBank sold its majority shares in housing project company mLocum to another housing company called Archicom S.A. in Poland. We reached out to Monika Powroznik, Deputy Director for mBank, to enquire about the cooperation with her external counsel on this specific sale.
CEELM: What system do you usually use at mBank to select external counsel? Is that the method you employed this time?
M.P: With regards to M&A transactions, mBank cooperates with reputable law firms operating on Polish market. Depending on the deal, we ask a number of law firms to present their offer of services or we invite a specific firm which has a track record of successful cooperation with mBank in a particular sector.
CEELM: Why did you choose to work with CMS on this sale?
M.P: CMS represents high quality of legal expertise and extended understanding of business issues.
CEELM: What specific tasks did you ask CMS to handle?
M.P: CMS assisted mBank in each stage of the transaction, including negotiations. CMS's responsibilities were, in principle, to advise on the structure of the deal together with preparation of all relevant transaction documentation.
CEELM: Does mBank have an in-house legal team? If yes, in what way did you involve it in this sale?
M.P: mBank has an in-house legal team which is involved in every project: coordinating the legal work on mBank's side and that of the target company, revising documents prepared by external advisors, and preparing other documentation necessary for the transaction.
CEELM: Blazej Zagorski of CMS described the transaction as "yet another example of consolidation in the property development sector.” Why is this consolidation happening?
M.P: mBank Group is focused on its core business - financial services. Also, the sale of mLocum shares to the leading developer will allow us to make maximum use of the company’s potential and achieve its business goals on the Polish market.