COBALT together with the international law firm CMS advised the Polish asset management company PFR TFI, managed by Polish Development Fund (PFR), on the acquisition of a stake in the Lithuanian company UAB EMP recycling. The Foreign Expansion Fund, Closed-End Investment Fund of Non-Public Assets, which is managed by PFR TFI, took over 49% of shares in the company from another Polish company, Elemental Holding S.A.
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.
Elemental Holdingis a leading Polish group operating in the recycling and recyclable material trading industry and a top supplier of recyclable material for metalworks and foundries all over the country. Besides Poland and Lithuania, it also runs its operations using recycling facilities located in Germany, Finland, United Kingdom, Turkey and Middle East countries. Elemental Holding will keep the controlling stake in UAB EMP recycling and will continue to manage the Lithuanian company, while the proceeds of sale of the shares will be allocated to planned acquisitions and further development.
The key activities of UAB EMP Recycling include purchasing, collection, recycling and sale of secondary raw materials. UAB EMP recycling has created a network of household electronic waste collection facilities and has technologies allowing to recycle waste electrical and electronic equipment, non-ferrous metal waste and catalyst waste.
COBALT together with the Warsaw office of the international law firm CMS drafted the share purchase agreement and other transaction-related documents. COBALT provided full legal support on various legal issues and transaction matters required by the client. The team was led by COBALT Lithuania Partner and Head of M&A Practice Group Dr Juozas Rimas and Associate Mantas Juška.