With the war in Ukraine raging for more than six months, law firms across the region have reported increased workloads in corporate and M&A, tax, employment, immigration law, and inquiries on the sanctions regimes in relevant jurisdictions, noting that companies from Ukraine, Russia, and Belarus are variously looking for a new home. Whether to avoid sanctions or escape the war, those companies consider a variety of factors in determining where to go.

Allen & Overy has advised the UniCredit Bank Czech Republic and Slovakia on the update of its international mortgage-covered bond program and EUR 500 million issuance of mortgage-covered bonds. White & Case advised the joint lead managers.

Dentons has advised a club of banks led by Tatra Banka and including UniCredit Bank Czech Republic and Slovakia, Slovenska Sporitelna, and Ceskoslovenska Obchodni Banka on a EUR 160 million ESG-linked syndicated loan to MH Teplarensky Holding. BBH reportedly advised the borrower.

In April 2022 deputies of the Slovak parliament, approved two long-awaited laws: Act No 200/2022 on zoning (‘the Zoning Act’); and Act No 201/2022 on construction (‘the Construction Act’). These two laws are about to replace the 1976 Building Act. Although they do not take effect until 1 April 2024, they bring such fundamental changes that need to be considered right away, in particular by the developers and real estate investment funds. The most significant of these changes are summarised below.

Dentons has advised Komercni Banka and Ceska Sporitelna on the EUR 715 million refinancing of the Eurowag Group. White & Case advised Eurowag.

PRK Partners Advises Ceska Sporitelna, Komercni Banka, and UniCredit Bank Czech Republic and Slovakia in the sale of bonds issued by EPH Financing.

Penteris, HKV, and Oppenheim have advised Immofinanz on the acquisition of a retail property portfolio from the CPI Property Group for EUR 324.2 million. Reportedly, BPV Braun Partners advised Immofinanz as well.

Political upheaval has been shaking Slovakia, halting legislative efforts and endangering the country's readiness to face the energy and other crises, according to Havel & Partners Partner Stepan Starha. 

Following a long lasting process since 2010 the European Court of Human Rights (the “ECHR”) held that Slovakia violated right to property due to the refusal of its courts to enforce an International Chamber of Commerce (the “ICC”) arbitral award ruling that the National Property Fund of Slovakia (the “NPF”) was due to pay BTS Holding (“BTS”) approx. EUR 1.9 million plus interest. (the “Decision”)

JSK has advised Abris Capital Partners and its portfolio company Alsendo on their acquisition of a majority stake in Zaslat.cz. Samak reportedly advised the sellers.

Glatzova & Co has advised Pale Fire Capital on its acquisition of an investment stake in Czech heat pump manufacturer Acond. The NK Law Group advised the previous investor on the sale.

Contributed by CMS.

Dentons has provided pro bono legal representation to whistleblower Maria Koranova, an employee of a state-funded organization founded by Slovakia’s Ministry of Health.

New investment screening legislation entered into force on 1 March 2021. Under the new FDI regime the acquisition of a shareholding in certain designated entities or of the business of these entities needs to be reported and may be subject to approval of the Slovak Government.

Dentons has advised a syndicate of banks led by Ceska Sporitelna, and including Ceskoslovenska Obchodni Banka and Komercni Banka, on the financing of KKCG Group and Aricoma Group’s acquisition of Musala Soft. Polenak, Boyanov & Co, and, reportedly, Andric and TM & Partners advised the banks as well. Clifford Chance advised Aricoma Group on the deal.

Last year has been a busy time in terms of warranty & indemnity insurance for the CEE market, according to W&I Insurance Broker and Advisor and former M&A lawyer Gergely Juhasz.

Havel & Partners has advised Slovenska Posta on a four-year investigation and administrative proceedings concluded with imposing commitments and no fine.

Havel & Partners has advised ZFP Investments on its acquisition of the Blumental Offices project from Corwin. Dentons advised the seller.