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Banking and Finance

A new entry to Živković Samardžić’s track record in the Serbian banking sector: AIK Banka is the new owner of Eurobank Direktna

Friday, 03 November 2023 by ZS Law

Following the announcement from March 2023, and upon receipt of the approvals by all competent regulatory authorities, on November 2, 2023, the shareholders of Eurobank Direktna completed the sale of their shares in Eurobank Direktna to AIK Banka a.d.

Eurobank S.A. (“Eurobank”) entered the banking business in Serbia in 2003 as Eurobank EFG Serbia. After the merger with Direktna Banka, in which Živković Samaržić has advised both merging banks as well, the merged bank – Eurobank Direktna, has become number eight in the Serbian market with a market share of 5.5% in assets, a loan portfolio of 1,7 billion euro and 1,5 billion euro deposits (as of September 2022).

Following this transaction, Eurobank Direktna’s and AIK Banka’s joint participation in the Serbian banking market will be higher than 13%, with over 4 billion euro deposits and a very strong capital base.

The acquisition of Eurobank Direktna is another milestone in the Serbian banking sector as it also reflects the increasing competition and consolidation within Serbia’s banking sector.

Živković Samardžić acted as local legal counsel to Eurobank SA on all aspects of this process. The transaction was led by Živković Samardžić corporate/M&A partners Branislav Živkovićand Sava Pavlović, and was supported by the team consisting of partner Uroš Đorđević, and associates Ilija Milosavljević and Ana Grebo.

Branislav ŽivkovićUroš DjordjevićSava PavlovićAna greboIlija MilosavljevićCorporate and M&A
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Živković Samardžić Advises on the Sale of HDL Design House to Capgemini Consulting Österreich AG

Thursday, 28 September 2023 by ZS Law

Živković Samardžić, one of Serbia’s leading full-service independent law firms, has advised the shareholders of HDL Design House, a leading independent provider of silicon design and verification services in Europe, on the sale of this company to Capgemini Consulting Österreich AG, a multinational information technology (IT) services and consulting company.

HDL Design House was founded in 2001 and headquartered in Belgrade (Serbia) and it comprises approximately of 300 highly skilled engineers with substantial experience in delivering advanced custom chip designs for multiple industries.

Capgemini is a global leader in partnering with companies to transform and manage their business by harnessing the power of technology. With its strong 55-year heritage and deep industry expertise, Capgemini is trusted by its clients to address the entire breadth of their business needs, from strategy and design to operations, fueled by the fast evolving and innovative world of cloud, data, AI, connectivity, software, digital engineering, and platforms. It is a responsible and diverse organization of 350,000 team members in more than 50 countries. Živković Samardžić team that acted as lead legal counsel to the shareholders of HDL Design House on all aspects of this transaction consisted of Partners Branislav Živković, Uroš Đorđević, Igor Živkovski, Sava Pavlović, and Associate Danka Draško.

Corporate and M&AUroš ĐorđevićIgor ŽivkovskiBranislav ŽivkovićSava PavlovićDanka Draško
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Živković Samardžić secured a victory for B92 at the European Court of Human Rights

Sunday, 10 September 2023 by ZS Law

Kruna Savović, Živković Samardžić Technology, Media and Telecommunications Partner and a Head of Media Litigation, led the Živković Samardžić team that has secured a victory for RADIO BROADCASTING COMPANY B92 AD at the European Court of Human Rights.

The case at hand originated in an application against Serbia (no. 67369/16), concerning the TV news broadcast and an online article published in 2011, naming the Assistant Minister of Health at the time, for whom the officers of the Organised Financial Crime Department’s Anti-Corruption Division of the Serbian Criminal Police Directorate, had a reason to suspect, in the pre-trial proceedings regarding the procurement of AH1N1 vaccines in 2009, was involved in the abuses. According to the TV news broadcast and online article published by B92, the name of the Assistant Minister of Health, along with several others, was omitted from the final criminal complaint that was brought against only three persons. Broadcaster based its reporting on a note filed by the officers of the Anti-Corruption Division informing their superiors on the issue.

In 2012, the Assistant Minister of Health instituted proceedings against the broadcaster in the Belgrade High Court, seeking compensation for non-pecuniary damage, publication of the court’s judgment, and removal of the two articles from the broadcaster’s Internet portal. The Assistant Minister submitted, in particular, that it was not true that she had been suspected of abuse of office, or of anything else, nor had she been removed from the alleged list of suspects because of illicit influence. The Belgrade High Court ruled partly in favor of the Assistant Minister and ordered the broadcaster to pay her RSD 200,000 (approximately EUR 1,750) with statutory interest by way of compensation for non-pecuniary damage, and RSD 113,100 (approximately EUR 990) for costs; and to remove one of the articles from its Internet portal. The Belgrade High Court also ordered the editor-in-chief to publish the judgment. The court found that the broadcaster had not used due diligence and so had not discovered the incompleteness of the information in question. Instead, according to the court, the broadcaster had relied on a document that contained operational findings of the police in pre-trial proceedings and as such did not constitute an official document of a relevant State body.

In 2014, the Belgrade Court of Appeal upheld the first-instance judgment and, in substance, endorsed its reasoning. In 2016, the Constitutional Court dismissed the broadcaster’s constitutional appeal.

In its judgment, the European Court of Human Rights, considered that the domestic courts took a rather limited view when characterizing the suggestion that the names disappeared from the list of suspects because of pressure from the Special Prosecutor on the Ministry of the Interior, as a statement of fact as well, and not as a value judgment for which the official internal note have provided factual basis. The European Court of Human Rights confirmed that even though internal official reports can be an important source for journalists, they cannot release them completely from their obligation to base their publications on sufficient research. However, the Court considered that by attempting to obtain the Assistant Minister’s and the Ministry’s version of events and by publishing the response of the Special Prosecutor’s Office, the broadcaster must be considered to have sought to achieve a balance in its reporting and has complied with its duty of diligence in verifying the authenticity and content of the police note. The Court was satisfied that the applicant company acted in good faith and with the diligence expected of a responsible journalist reporting on a matter of public interest.

The Court emphasized that if the national courts apply an overly rigorous approach to the assessment of journalists’ professional conduct, journalists could be unduly deterred from discharging their function of keeping the public informed. The courts must therefore take into account the likely impact of their rulings not only on the individual cases before them but also on the media in general. Their margin of appreciation is thus circumscribed by the interest of a democratic society in enabling the press to play its vital role in imparting information of serious public concern.

Thus, the European Court of Human Rights unanimously declared that there had been a violation of Article 10 of the Convention and held that the respondent state (Serbia) is to pay the broadcaster EUR 2,740 in respect of pecuniary damage, EUR 2,500 in respect of non-pecuniary damage and EUR 2,400 in respect of costs and expenses.

The original judgment in English language is available here.

You can read how Serbian media commented the judgment here and here.The team acting on behalf of B92 in this case, also included our former associate, Jovan Pjevač. 

Media and TelecommunicationsKruna SavovićTechnology Media and Telecommunications
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Živković Samardžić Advises Samsic on the Acquisition of the Remaining 45% Stake in Samsic STM from the Minority Shareholders

Monday, 24 July 2023 by ZS Law

Živković Samardžić has advised Samsic Holding dejavnost holdingov d.o.o, the Slovenian member of the French Samsic Group, on the acquisition of the remaining 45% stake in Samsic STM d.o.o, Belgrade based facility management, construction and installation services provider, from the two founding shareholders. As a result of the transaction, Samsic became the sole shareholder of this Group’s subsidiary in Serbia.

Founded in 1986 and based in Rennes, France, with 117,000 employees and an annual turnover of EUR 3,45 billion, Samsic is the European leader in facility management. Today, while present in 27 countries in Europe and beyond, Samsic contributes to the performance of its 30,000 customers by offering them customized services, tailored to their specific needs.

Živković Samardžić acted as legal adviser to Samsic on all aspects of the deal, including structuring the transaction, drafting and negotiating of transactional documentation, assisting with the preparation and execution of the closing process and all-encompassing legal advisory regarding post-closing activities.

The Živković Samardžić team that has advised Samsic on this deal consisted of Partner Igor Živkovski and Associate Teodora Milošević.

Corporate and M&AIgor ŽivkovskiTeodora Milošević
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Živković Samardžić Advises TinySeed on Investment in Startup Plainly

Monday, 19 June 2023 by ZS Law

Živković Samardžić has advised TinySeed, a US venture capital fund which runs a remote accelerator designed for early-stage SaaS founders, on its investment in Plainly, a startup developing video generation API that allows businesses to create automated video creation workflows and increase their marketing output, scale up personalized sales or improve internal communications.

Plainly was one of the 26 startups that were accepted to participate in the Fall 2022 Americas and EMEA accelerator programs designed to help founders with a revenue-generating SaaS optimize product-market fit and grow faster, organized by TinySeed, which allowed Plainly to receive support, answers, and accountability needed to scale its business faster.

TinySeed is a year-long, remote accelerator that funds 15-20 SaaS companies at once. Those companies go through their accelerator program as a batch. TinySeed’s mission is to increase the world’s population of independent SaaS companies, giving capital-efficient startups an option between bootstrapping and raising traditional venture capital. It specializes in the fields of financial services, software, and venture capital.

Živković Samardžić team led by Partner Igor Živkovski and Associate Ana Grebo assisted TinySeed with performing due diligence of Plainly, structuring the transaction, drafting and negotiating of transactional documentation, as well as closing activities related to the investment.

Corporate and M&AIgor ŽivkovskiAna grebo
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Živković Samardžić advising Fifth Quarter Ventures in the procedure of becoming the fourth Alternative Investment Fund in the Republic of Serbia ever

Monday, 24 April 2023 by ZS Law

Živković Samardžić, one of Serbia’s leading full-service independent law firms with proven track record and vast experience in the Serbian capital market, advising both investors and startups, has legally advised and provided regulatory and compliance support to Fifth Quarter Ventures (FQV) in the procedure of becoming the Alternative Investment Fund in the Republic of Serbia.

On April 21, 2023, the Securities Commission brought a decision to grant a permit to FQV, which enables FQV to transform into an Alternative Investment Fund Management Company, allowing it to step into the final procedural phase before the Securities Commission for obtaining the vital permit to establish an Alternative Investment Fund in the Republic of Serbia. This is the newest “big thing” in the Serbian capital market, having in mind that FQV will establish the fourth alternative investment fund ever in the Republic of Serbia.

FQV is founded with the idea to be an early-stage VC fund focused on investing in top startups from the Western Balkan. Also, with its experienced founders and proven business model, FQV will help startups that currently outgrow local investors and introduce them to the top foreign VCs. Finally, FQV’s strategy is also directed to the startups run by Serbian and Croatian founders in the diaspora who can benefit from FQV connections, and to the elite US/Canadian startups which have the Balkan presence that seeks help with product building & faster execution, in which case FQV has an active role in team and product building, in order to secure an allocation in a round led by Tier 1 VC from the Silicon Valley.

Živković Samardžić is a legal adviser and continuously supports FQV in all aspects of establishing and developing alternative investment fund in the Republic of Serbia. Živković Samardžić team consists of the Partners Igor Živkovski and Sava Pavlović, and Associate Ana Grebo.

Igor ŽivkovskiSava PavlovićAna grebo
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Živković Samardžić Advises on the Sale of Eurobank Direktna to AIK Banka

Thursday, 02 March 2023 by ZS Law

Serbian banking market continues with consolidation and Živković Samardžić is again on the spot. Živković Samardžić, one of Serbia’s leading full-service independent law firms, has advised the shareholders of Eurobank Direktna a.d. Beograd (“Eurobank Direktna”) on the sale of the entire stake of 100% in Eurobank Direktna to AIK Banka a.d. Beograd(“AIK Banka”).

Eurobank Direktna is headquartered in Belgrade and operates through 4 primary segments: Retail Banking, Corporate Banking, Small Business Banking & Digital Banking, and holds a market share of 6% in terms of total assets. It currently employs c. 1,600 employees, operates 98 branches and has a balance sheet size of €2.4bn. Eurobank Direktna is majority owned by Eurobank Holdings (70%) and former Direktna Banka shareholders (30%).

Eurobank Direktna has developed its banking business since entering the market in 2003 as Eurobank EFG Serbia. Following the merger with Direktna Banka, it has become number 8 in the market with market share of 5.5% in assets, loan portfolio of 1.7 billion euro and 1.5 billion euro deposits (as of September 2022). Through a wide network of branches and online platform, Eurobank Direktna provides a high-quality service to its clients.

Thanks to the complementarity of the activities of the two banks, the combined bank would have attained an over 13% market share in total assets, with over 4 billion euro deposits and strong capital base of more than 800 million euros (as of September 2022).

Completion of the transaction is subject to customary approvals by the competent regulatory and supervisory authorities and is expected to take place during the third quarter of 2023.

Živković Samardžić team that acted as local legal counsel to the shareholders of Eurobank Direktna on all aspects of this process consisted of Partners Branislav Živković, Igor Živkovski, Sava Pavlović and Uroš Đorđević.

Uroš ĐorđevićIgor ŽivkovskiBranislav ŽivkovićSava Pavlović
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Živković Samardžić Appointed as the Legal Advisor to the Republic of Equatorial Guinea

Monday, 19 December 2022 by ZS Law

Živković Samardžić has been appointed as the legal advisor to the Republic of Equatorial Guinea relating to the negotiations and conclusion of commercial agreements with Serbian companies for the purchase of goods as well as to providing all additional legal services and consultations required by this country regarding its business operations in Serbia.

Earlier this year the highest state officials of the Republic of Serbia and the Republic of Equatorial Guinea held several meetings during official visits to the countries and announced that the two countries were to sign important agreements on cooperation in different industries. As a result, the two countries raised the level of economic cooperation at the same time achieving benefit from mutual cooperation, exchange of experiences and improvement of economic and trade exchange.

Within that cooperation, numerous commercial agreements for the purchase of food products, household and consumer goods produced by various Serbian companies were concluded the last few days, while it is expected that the agreements which currently are in negotiation process will also be realized this month.

The Republic of Equatorial Guinea is one of the smallest countries on the African continent, located in the Central Region next to the Gulf of Guinea and it is the only Spanish-speaking country in Africa. Despite being one of the smallest countries on the continent, the Republic of Equatorial Guinea is a country in continuous development and with precious natural resources. In the late 1990s, American multinationals discovered significant reserves of crude oil and natural gas, resources that began to contribute to the global energy supply in recent years. In the last decade, the international visibility of the Republic of Equatorial Guinea has grown exponentially and the country is postulated as a pillar of stability and security in the Central African sub-region.

The Živković Samardžić team that provides legal support to the Republic of Equatorial Guinea consists of Partner Igor Živkovski and Associate Teodora Milošević.

Igor Živkovski
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Živković Samardžić has Provided Support on the Sale of Arriva Group’s Business in Serbia

Monday, 03 October 2022 by ZS Law

Arriva Group, the European passenger transport service provider, has reached an agreement to divest its Danish business “Arriva Danmark A/S” and Serbian business “Arriva Litas d.o.o”, as well as its bus business in Poland “Arriva Bus Transport Polska Sp. z o.o” to Mutares SE & Co. KGaA, an international financial investor. The sale covers the entire Danish business, including the bus, water bus and rail businesses, its franchise in the car-sharing company SHARE NOW and UCplus, a nationwide education centre; the entire Serbian business, which is the second largest private bus operator in Serbia; and the Polish bus business, which operates city-based public transport contracts and regional services. The transaction is expected to be completed towards the end of 2022, subject to customary closing conditions, including approval by the Deutsche Bahn Supervisory Board and the German Federal Ministry for Digital and Transport, as well as antitrust clearance by the respective local authorities.

UK-based Arriva Group is a part of the German Deutsche Bahn AG, one of the world’s leading passenger and logistics companies. Arriva is a leading provider of passenger transport across Europe, employing around 40,000 people and delivering around 1.2 billion passenger journeys across 13 European countries. With buses, trains, coaches, trams, waterbuses, car and bike-sharing systems, as well as on-demand transport solutions, Arriva proudly connects people and communities safely, reliably and sustainably, delivering these services in a better way, every day. The activities of Arriva are divided into four lines of business: UK Bus, UK Trains, The Netherlands and Mainland Europe.

Munich headquartered Mutares SE & Co. KGaA acquires medium-sized companies and parts of groups with headquarter in Europe that are being sold in the course of a repositioning process at their owners and show a clear potential for operational improvement. Mutares actively supports and develops its portfolio companies with its own investment and consulting teams as well as through acquisitions of strategic add-ons. Its goal is to acquire companies with revenues of EUR 100 million to EUR 750 million. The aim is to achieve a clear value increase with a focus on sustainable, long-term growth of the portfolio company.

The Živković Samardžić team consisted of Partners Igor Živkovski and Sava Pavlović.

Igor ŽivkovskiSava Pavlović
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Živković Samardžić Advises TITAN Cementara Kosjerić on Merger with Its Affiliated Company

Tuesday, 20 September 2022 by ZS Law

Živković Samardžić has advised TITAN Cementara Kosjerić, the Serbian subsidiary of TITAN Cement Group, on merger with Stari Silo Company, its affiliated company for development of building projects. As a result of the merger, Stari Silo Company ceased to exist and became part of TITAN Cementara Kosjerić.

TITAN Cement Group is an international, cement and building materials producer aspiring to serve the needs of society, while contributing to sustainable growth with responsibility and integrity. The Group is operating cement plants in 10 countries (USA, Greece, Albania, Bulgaria, North Macedonia, Kosovo, Serbia, Egypt, Turkey and Brazil), with an annual capacity of 27 million metric tons of cement and cementitious materials, and has presence in more than 15 countries. The Group employs about 5,500 people worldwide. The Group’s business activities cover the production, transportation and distribution of cement, concrete, aggregates, fly ash, mortars and other building materials.

TITAN Cementara Kosjerić is part of TITAN Group and the newest cement plant in Serbia. It began its operations in 1976 and very quickly found its place in the market owing to the high quality of cement and professional attitude towards its clients. With the plant’s capacities, producing 750,000 tons of cement per year, TITAN Cementara Kosjerić supplies substantial portions of markets of Serbia and Montenegro.

Živković Samardžić acted as legal adviser to TITAN Cementara Kosjerić on all aspects of the deal, including structuring the transaction and drafting transactional documentation, as well as assisting with the preparation and execution of the closing process. The Živković Samardžić team that has advised TITAN Cementara Kosjerić on merger with Stari Silo Company was led by Partner Igor Živkovski.

Igor Živkovski
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