CMS has advised Poland's PFR TFI on an investment in Lithuania's UAB EMP recycling.
As part of the transaction, Foreign Expansion Fund, Closed-End Investment Fund of Non-Public Assets (FEZ FIZAN), which is managed by PFR TFI, took over 49% of shares in the company from Elemental Holding S.A., a Polish capital group that operates in the recycling industry in a number of countries in Central and Eastern Europe, as well as in Germany, Finland, the United Kingdom, Turkey, and the Middle East.
The Foreign Expansion Fund was established in order to help Polish companies invest in foreign projects. The Fund provides co-financing for foreign subsidiaries belonging to Polish companies. Polish companies may take advantage of financing in the form of capital, mezzanine financing and loans secured by assets of a foreign project, without recourse to the Polish company. The time horizon for the Fund’s investments is tailored to the specific features of a project and usually ranges from five to seven years.
According to CMS, "the transaction will enable Elemental Holding group to allocate the funds obtained to planned acquisitions and further development. Elemental Holding will continue to manage the Lithuanian company, which constitutes an important element of the creation of a strong recycling group in Central and Eastern Europe and the Baltic States."
The CMS team included Partner Jakub Marcinkowski, Senior Associate Olga Czyzycka, and Lawyer Michal Sowinski.
Editor's Note: After this article was published CEE Legal Matters learned that Cobalt assisted CMS on Lithuanian matters related to the Polish Foreign Expansion Fund's acquisition. The firm's team was led by Partner Juozas Rimas and included Associate Mantas Juska. In addition, legal advice on the seller side was provided in-house by Maria Janicką, Head of Legal at Elemental.