Hogan Lovells Advises Deutsche Telekom Subsidiary On Launch Of Joint Venture
08 June 2010
Moscow, 8 June 2010 - Hogan Lovells has advised a subsidiary of Deutsche Telekom, Scout24 Group ("S24"), a major European online marketplace provider, on the establishment of a joint venture between a group member, online car marketplace provider AutoScout24 GmbH ("AS24"), and a major Russian media holding "Pronto Moscow" ("PM") controlled by Turkish LSE-listed media group Trader Media East.
The joint venture will allow S24 to further expand its business and create the platform for the online car classifieds in Russia. The transaction was signed on 29 April. The completion of the deal is subject to satisfaction of a number of conditions, including the establishment of a Russian operating company.
The joint venture is structured through the acquisition of a Dutch holding company in which PM and AS24 invest, which in turn will establish a Russian operating company. AS24 will contribute its know-how and various IP objects (including domain name, trade mark and platform), while PM will contribute its management and administrative resources, various services and expert knowledge of the Russian market.
We have assisted the client during all stages of the transaction. The deal was especially challenging as we had to develop a feasible legal structure in line with both the Russian and Dutch law for the parties' contributions to the joint venture.
Our team was led by partner Oxana Balayan assisted by counsel Maria Baeva (both Moscow) and senior associate Joost Broekhuis (Amsterdam) with support from associates Konstantin Kontievskiy (Moscow) and Leonie Huisman (Amsterdam). Our IPMT team was comprised of partner Natalia Gulyaeva and associates Ksenia Andreeva (all Moscow).
Oxana Balayan comments:
"The transaction is the first deal of this type in Russia, which will lead to establishment of the biggest market player in this sector. Our successful work on this transaction is another testament of a solid integrated approach of Hogan Lovells corporate and IPMT teams. The transaction is a result of cross-selling effort by Frankfurt partner Michael Sinhart. It became a successful introduction of the Moscow and Amsterdam teams to Deutsche Telecom Group."
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