Ellex Raidla law firm

We advised the acquisition of the largest data centre in the Baltics

The Estonian company Greenergy Data Centers has involved the Three Seas Initiative Investment Fund (3SIIF), an investment fund established within the framework of the Three Seas Initiative, as an investor and acquired MCF, the largest data center in the Baltics being established near Tallinn.

Greenergy Data Centers announce that on Tuesday it completed the acquisition of MCF Group Estonia OÜ, which is building a data center that is to be opened near Tallinn in 2021 and will have a maximum capacity of up to 20 megawatts.

With the transaction, 3SIIF acquired a controlling interest in Greenergy Data Centers OÜ, which, in turn, became the full owner of MCF Estonia OÜ, which is building the data center.

"Acquisition of the new data center to be built near Tallinn is the first step towards our goal of establishing energy-efficient data centers in the Central and Eastern European countries that have joined the Three Seas Initiative in the coming years," said Üllar Jaaksoo, founder and head of Greenergy Data Centers OÜ.

According to Jaaksoo, in light of growing data volumes, there is a demand for modern data centers in the entire Central and Eastern European region that are energy efficient and meet the highest security requirements.

"Upon the completion of the first phase of the new data center in the first quarter of next year, we will continue to expand the business model to other Central and Eastern European countries," he added.

"The Greenergy platform and its first data center, MCF, will enhance digital connectivity through a network of energy efficient data centers across the Three Seas region. We are delighted that it we are working with such a high caliber team in this important first digital investment for the fund," said Joe Philipsz, senior investment director at Amber Infrastructure, investment adviser to 3SIIF.

The Three Seas Initiative Investment Fund (3SIIF), established under the Three Seas Initiative, is a fund for infrastructure investment planning in Central and Eastern Europe, focusing on the energy, transport and digital infrastructure sectors.

The Three Seas Initiative aims to promote cooperation, in particular in the development of infrastructure in the energy, transport and digital sectors. The objectives of cooperation are economic growth, the well-being of the population and increasing Europe's competitiveness, as well as energy security and an energy market based on open competition, and the achievement of climate goals through smart investment.

Ellex Raidla advised Three Seas Initiative Investment Fund and Amber Infrastructure Group on the deal. The team was led by Partner Sven Papp and included Managing Partner Ants Nõmper, Counsel Jaanus Ikla, Senior Associates Gerda Liik and Rauno Klemm, and Associates Kairi Kilgi and Kevin Gerretz.

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Industry

Real Estate & Construction

Field of practice

Corporate, M&A

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Advised Gamesys Limited in acquisition of Estonian software manufacturer Snowcat Games

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We advised Danske Bank A/S in the sale of shares of Danske Capital AS to AS LHV Varahaldus

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Advised Xalto CDO II B.V. in the sale of a majority stake in Starman

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Advised as Silmet Grupp in the sale of controlling stake in AS Silmet to Molycorp

Ellex Raidla advised AS Silmet Grupp in the sale of controlling stake in AS Silmet to Molycorp. Molycorp acquired a 90.023% shareholding in AS Silmet, one of only two rare earth processing facilities in Europe, in a transaction valued at approximately EUR 63 million. Molycorp acquired 80% of the outstanding shares of AS Silmet from AS Silmet Grupp, which will retain a 9.977% ownership interest going forward. Molycorp acquired the other 10.023% from Treibacher Industrie AG.

Raidla Lejins & Norcous advised AS Silmet Grupp in the negotiation process and in preparation of the agreements (incl stock purchase agreement, shareholders' agreement, lock-up agreement and transition services agreement). The work also included preparation of the documents and procedures required for the waiver of the right of first refusal of the existing shareholders. As a substantial part of the agreements was subject to New York law, a leading US law firm Squire Sanders was the co-advisor for AS Silmet Grupp. The project team of Raidla Lejins & Norcous was led by senior partner Jüri Raidla and associate Gerda Liik.

The acquisition provides Molycorp with its first European base of operations as well as doubles the company’s current rare earth production capacity from approximately 3,000 tonnes per year of rare earth oxide (REO) equivalent to 6,000 tonnes. AS Silmet will immediately begin sourcing rare earth feed stocks for production of its products from Molycorp’s Mountain Pass, California rare earth mine and processing facility, making it the first rare earth oxide and metal producer in Europe that is not dependent on rare earth materials sourced from China. As part of the transaction, the company also will change its name to AS Molycorp Silmet. The facility’s main focus will be on the production of rare earth oxides and metals -- including didymium metal, a critical component in the manufacture of neodymium-iron-boron permanent rare earth magnets -- from feed stocks supplied by Molycorp’s Mountain Pass, California rare earth mine and processing facility. However, the transaction also expands Molycorp’s manufacturing capabilities beyond rare earths into the production of the rare metals niobium and tantalum, which between them have a wide variety of uses in electronics, materials manufacture, optics, health care, chemical process equipment, power generation systems, aerospace, superconductive materials, and others. AS Silmet is one of the world’s leading producers of pure niobium and tantalum metal. AS Silmet’s manufacturing operation, which employs approximately 550 workers, is located in Sillamäe, Estonia. The company currently sells products to customers in Europe, North and South America, Asia, Russia, and other previous Soviet Union countries.

About Molycorp
Colorado-based Molycorp, Inc. is the only REO producer in the Western Hemisphere and currently produces approximately 3,000 metric tons of commercial rare earth materials per year. Following the execution of Molycorp's "mine-to-magnets" strategy and the expected 2012 completion of Phase 1 of its modernization and expansion efforts at its Mountain Pass, California processing facility, Molycorp expects to produce at a rate of approximately 19,050 metric tons of REO equivalent per year. The Company expects to achieve an annual production capacity by the end of 2013 of approximately 40,000 metric tons of REO equivalent per year after the completion of Phase 2. Molycorp intends to provide to the market a range of rare earth products, including high-purity oxides, metals, alloys, and permanent magnets.

About AS Silmet

Estonia-based AS Silmet is one of the biggest rare metal and rare earth metal producers in Europe. Manufacturing at AS Silmet includes three factories that conduct rare earth metals separation; rare metals production; and metallurgical operations. AS Silmet produces up to 3,000 tonnes rare earth products and 700 tonnes of rare metal products annually. The company currently sells products to customers in Europe, North and South America, Asia, Russia, and other previous Soviet Union countries.

Industry

Industrials

Field of practice

Corporate, M&A