On October 29, 2009 the private equity fund EQT V acquired, in a complex transaction involving simultaneous closings in more than 5 different jurisdictions, control over 100% of Eurocom Cable Management Bulgaria EOOD from Warburg Pincus and 70% of CableTel EAD from Gene Phillips. The target companies are the major CATV operators in Bulgaria and Macedonia, offering integrated communication home services – cable TV, digital TV, HDTV, Internet and telephony. The total value of the two transactions exceeds EUR 200 million, which sets the deal as the largest M&A deal in Bulgaria in the telecommunications sector in 2009. Borislav Boyanov & Co. has acted for EQT V on all Bulgarian law aspects of the transaction and has coordinated the provision of Macedonian legal advice for the buyer through the Macedonian member of the SEE Legal Group.
The work of Borislav Boyanov & Co. involved (i) a complex legal due diligence process of both target groups of companies (22 in Bulgaria and 14 in Macedonia); (ii) advice on the share purchase agreements and related documentation; (iii) advising the buyer side on all Bulgarian law aspects in relation to a syndicated term loan facilities agreement and related security documentation pursuant to which a syndicate of international banks lead by ING provided funding for refinancing of existing loans of the target group companies, (iv) obtaining of a concentration clearance and (v) all Bulgarian law aspects of an extremely complex closing of the deals.
Borislav Boyanov & Co. continues to provide legal services to EQT V and the target group companies with respect to the post closing steps of the transaction, part of which is the planned merger of the companies where the surviving company will be the clear market leader in both Bulgaria and Macedonia with annual revenues of approximately EUR 70 million.
On the Eurocom sale, Borislav Boyanov & Co. also acted as a legal advisor to its longstanding client Warburg Pincus by forming a separate team of lawyers working under ”Chinese Wall” arrangements. The above fact is a consequence of the trust and respect gained by Borislav Boyanov & Co. among the business community in Bulgaria through its excellent quality work and high ethical standards demonstrated during the last two decades