COBALT advised the second largest Lithuanian telecommunication services provider Cgates on acquisition of Lithuanian regional operator KAVA. The value of the deal, which is subject to approvals of Lithuanian Competition Council and the Communications Regulatory Authority, is not being disclosed.
The investment into KAVA will allow the expansion of the scope of KAVA services including the introduction of new digital TV services and high quality fibre internet access.
Kava is a growing telecommunications company with more than 20,000 customers in Lithuania. It has one of the country's most modern fibre networks, covering more than 100,000 households across the major cities Vilnius, Klaipėda, Šiauliai and Panevėžys.
Cgates is a wholly owned subsidiary of the Estonian cable operator Starman, of which East Capital Explorer owns 63%. Cgates is Lithuania’s second largest cable TV and broadband internet provider with a network covering 300,000 households in 12 cities. Its revenues in 2014 were EUR 15.8 million.
COBALT assisted Cgates in drafting the transaction documents, represented it during negotiations and advised on other transaction related matters. The legal team was led by Managing Partner Dr Irmantas Norkus and Managing Associate, Head of M&A practice group Dr Juozas Rimas.