COBALT advised the shareholders of the second largest Lithuanian provider of television rebroadcasting and internet access services Cgates on the sale of their shareholding in the company to the Swedish investment company East Capital. The transaction was valued at more than EUR 56 million. The transaction was completed on 12 February 2015 following approval from the Lithuanian competition authority.
Cgates, previously owned by SEB bank group companies and other investors, has over 180,000 subscribers in Lithuania. Cgates provides interactive, digital cable and terrestrial television, analogue TV, fiber optic broadband and fixed network telephony services.
East Capital Group is a leading emerging and frontier market asset manager in Easter Europe and the Baltics since 1997. East Capital is a shareholder of various Lithuanian companies (AB Pieno žvaigždės, AB City Service, AB Linas Agro, APB Apranga, AB Šiaulių bankas). The fund also owns the shopping centre "GO9" and the office building "Burės" in Vilnius, Lithuania. East Capital Explorer is listed on Nasdaq Stockholm stock exchange.
COBALT assisted in drafting the transaction documents, represented Cgates’ shareholders during negotiations and advised on other transaction related matters. The team was led by Dr Juozas Rimas, Head of Mergers and Acquisitions Practice Group at COBALT Lithuania, and Managing Partner Dr Irmantas Norkus.