Did You Know that, according to the Activity Rankings function of the CEELMDirect website, Sorainen Partner Rudolfs Engelis has worked on 16 reported Latvian Banking & Finance deals since 2013 – far and away the most of any lawyer in Latvia?

A slowdown in capital market transactions and some M&A activities, a governmental crisis and tensions with the Russian-speaking population, and rising energy prices and inflation were all hallmarks of Estonia’s past six months. While the geopolitical situation and economic situation remain tough, direct investments in Estonia seem to be getting back on track, across a number of sectors, according to Cobalt Partner Marina Kotkas.

Cobalt has advised venture capital fund Change Ventures on its seed investment in Estonian recruitment platform RecruitLab. Triniti advised RecruitLab.

Cobalt has advised Braitin on its acquisition of the Prie Vilneles project in Markuciai from developer Realco.

As the main trends of the transaction market in the first half of 2022, the boom of startups and the changes in their valuations, the undiminished confidence of foreign investors despite the geopolitical situation, and the ongoing consolidation of the health care and renewable energy sectors can be singled out.

Cobalt has advised Coffee Address Holding on its EUR 5 million unsecured bond issuance. Eversheds Sutherland Bitans advised on collateral agent matters and undertook collateral agent functions for the term of the bonds. Signet Bank was the arranger of the issuance.

The first half of 2022 has not (yet) yielded such high profile deals as seen in 2021 (like Printful becoming the first Latvian “unicorn”) but there has been a steady trickle of transactions following the larger wave of 2021.

The resilience of the transactions market and the trust of investors in the Baltic region has proved remarkable, although figures show a 15% decrease in global mid-market M&A deals (according to the Refinitiv published M&A Review of the first half of 2022). Despite the Ukraine war and mounting global challenges the deal flow, although at a much calmer pace, continues and remains promising for the second half of the year. Looking back on the first six months, COBALT experts highlight the main trends in each of the Baltic countries.

ESG has moved from conference halls to a daily function for many companies worldwide. In Estonia, stakeholder expectations for corporate ESG are still evolving, yet rising. Some companies are already incorporating ESG into their daily business, as they understand its value. Along with stakeholder expectations, regulatory scrutiny is also increasing, showing a dramatic increase in ESG reporting requirements worldwide.

Cobalt has successfully defended and later represented Jurgita Jankauskiene, pro bono, in a traffic accident case.

Cobalt has advised plywood producer Latvijas Finieris on the investment project for the expansion of its RSEZ SIA Verems production facility in the Rezekne district.

Cobalt has successfully ensured the dismissal of bodily harm charges filed against Latvian journalist Olga Dragileva.

After a bit of a slowdown following the start of the war in Ukraine, the Latvian markets bounced back, with the financial and energy sector being particularly active, according to Cobalt Partner Dace Silava-Tomsone.

Cobalt has advised Practica Capital on its investment in a wellness and rehabilitation center in Druskininkai operated by UAB Upa MCT. Walless advised UAB Upa MCT.

Cobalt has advised Asgaard Oriens on its investment in a vertical farm in Lithuania co-developed by the Leafood Group. Motieka and Audzevicius advised the Leafood Group.

Cobalt, working with Mayer Brown, has advised Aurelius on the acquisition of McKesson UK. Sorainen advised the seller.

Cobalt has advised Bewi on its acquisition of the Lithuanian insulation company UAB Baltijos Polistirenas. Triniti advised the sellers on the deal.

Cobalt has advised Norwegian technology company Kongsberg Defense & Aerospace on the acquisition of the Lithuanian small satellite manufacturer NanoAvionics. TGS Baltic advised NanoAvionics founders Vytenis Buzas and Linas Sargautis who, together with AST & Science, sold NanoAvionics. Ellex advised AST & Science.