LAWIN advises on the acquisition of a majority stake in Snaigė AB, Lithuania‘s largest producer of refrigerators

LAWIN represented Vaidana UAB in its acquisition of 59.86 percent of shares in Snaigė AB, Lithuania’s largest producer of refrigerators, from investment funds KJK Fund, Amber Trust, Firebird Republics Fund Ltd and Firebird Avrora Fund Ltd.

The sale-purchase agreement of Snaigė AB shares and convertible bonds was signed on November 11, 2011. Vaidana UAB, which is a Lithuanian group company of Polair, Russia’s producer of refrigeration equipment, will acquire the stake in Snaigė AB for EUR 12.8 million or EUR 0.5397 per one ordinary registered share of the Company.

Aurimas Augustinavicius, Associate Partner at LAWIN Vilnius, says that the transaction involves the acquisition of a public listed company (with several foreign subsidiaries) with a long history and large scale of activities while the sellers are financial investors (private equity funds) who due to their nature are unwilling to accept high residual liabilities for the past activities of the target. This invoked complex and intensive negotiations and required creative solutions in order to find compromises suitable to all the parties involved.

The transfer of title to company’s shares to the Buyer is scheduled for December 12, 2011.