CMS advises on Lithuanian investment project
3 January 2018
CMS has advised PFR TFI on an investment in Lithuanian company UAB EMP recycling. As part of the transaction, the 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 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 comprised Jakub Marcinkowski, Partner and Advocate, Olga Czyżycka, Senior Associate and Advocate and Michał Sowiński, Lawyer. Their advice included drafting and negotiating the Investment Agreement and the Share Purchase Agreement concerning shares in UAB EMP recycling.
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 5 to 7 years. The Foreign Expansion Fund becomes a minority shareholder, leaving the management of the new project in the hands of the Polish company.