22.6.2021

Mandatum Life – Sale of Baltic Operations

Related services

We are advising Mandatum with the sale of their Baltic operations to the Lithuanian investment management group Invalda INVL. In connection with the transaction, the entire Baltic life insurance business of Mandatum Life will be transferred to the Invalda INVL group.

In recent years, Mandatum Life has succeeded in optimising its Baltic business for growth and building operational synergy for clients.

‘In the past year, Mandatum has reviewed its business strategies. The focus will be on the Finnish market and on wealth management in Finland and abroad with institutional clients. That is how we will provide our stakeholders with the greatest value. Our business in the Baltics has shown good results both financially and in great personnel and customer satisfaction numbers after its re-organisation. Invalda INVL’s offer came at the right time for the company’s strategic changes’, says Petri Niemisvirta, CEO of Mandatum Group.

The Baltic operations consist of three branch operations in Estonia, Latvia and Lithuania, which employ a total of 83 people. The branches offer their clients life insurances and unit-linked investment products.

The transaction is estimated to be completed during the first half of 2022.

The completion of the divestment is subject to authority approvals, such as from financial regulatory authorities.

Mandatum is one of Finland’s most solvent and respected financial companies and part of the successful Sampo Group. Mandatum offers its private, corporate and institutional customers comprehensive services for building wealth and preparing for the future.

Invalda INVL is a leading investment management group which is open and growing, invests with clients, and creates well-being for people through its work. The group’s companies, operating in Lithuania and Latvia, serve more than 240,000 individual and institutional clients, both regional and international, who have entrusted the Invalda INVL group with EUR 1.3 billion of assets for management in a variety of asset classes, including pension and mutual funds, individual portfolios, and private equity and other alternative investments.

Our team

Latest references

Aurevia and Labquality – Strategic reorganisation

We advised Aurevia Oy, a portfolio company of French private equity sponsor Mérieux Equity Partners, in a strategic reorganisation that involved splitting Aurevia and its parent companies into two independent groups of companies and reorganisation of its existing debt-financing arrangements. Following the reorganisation, the newly formed Aurevia continues as a leading provider of Contract Research Organization (CRO) and Quality Assurance and Regulatory Affairs (QARA) services, while the newly formed Labquality focuses on delivering External Quality Assessment (EQA) services. Aurevia serves operators in the medical devices, in vitro diagnostics and pharmaceutical sectors. Labquality’s customers include clinical laboratories and social and healthcare organisations. The reorganisation positions Aurevia and Labquality to allocate investments more effectively, accelerate growth within their respective customer segments, and respond to evolving market and client needs. The transaction was implemented through multiple parallel demergers and required comprehensive legal and tax structuring across several jurisdictions. Our team supported Aurevia throughout the planning and implementation phases, covering corporate, tax, employment law, and regulatory matters, as well as the optimisation of each group’s financing structure.

Downing – Acquisition of the entire share capital of Tornionlaakson Voima

We advised UK-based investment company Downing in its acquisition of the entire share capital of Tornionlaakson Voima Oy. Tornionlaakson Voima owns three hydropower plants in the Tengeliönjoki river system – the Portimokoski power plants in Ylitornio, the Jolmankoski power plants in Raanujärvi and the Kaaranneskoski power plants in Sirkkakoski. The power plants produce a total of approx. 45 gigawatt-hours of electricity per year. Tornionlaakson Voima’s daily operations will continue normally, and the transaction will not affect customers. The consummation of the transaction is subject to the approval of the Ministry of Economic Affairs and Employment. Downing has over 35 years’ experience in providing a wide range of investment solutions to the needs of institutional investors, advisers and retail investors. The company manages over £2 billion in assets in both the private and public markets and its current hydro power portfolio includes approx. 50 hydro power plants in the Nordics.

CapMan Infra’s portfolio company Koiviston Auto Group – EUR 300 million refinancing

We advised CapMan Infra’s portfolio company Koiviston Auto Group, Finland’s largest bus operator, in a finance arrangement in which it completed an approximately EUR 300 million refinancing. The transaction consists of the refinancing of the Group’s existing senior debt and secures long-term growth financing to support the Group’s continued investments in its rapidly expanding electric bus fleet. The financing package has been provided by a group of lenders consisting of Nord/LB, ABN AMRO, Edmond de Rothschild, LBP AM and Siemens. The transaction strengthens Koiviston Auto’s funding base and provides significant flexibility to execute the company’s growth strategy focused on sustainable public transportation. CapMan Nordic Infrastructure I acquired Koiviston Auto in December 2021 to support its expansion and operational development. The Group now serves communities nationwide and is at the forefront of the transition to zero-emission public transport in Finland. It operates approximately 300 electric buses, with more than 50 additional electric buses expected to be deployed into traffic during 2026, further accelerating the electrification of its fleet. “The successful completion of this refinancing marks an important milestone for Koiviston Auto Group,” says Henrik Mikkola, CEO of Koiviston Auto Group. “The strong support from a diversified group of high-quality lenders underlines the robustness of our business and our long-term strategy. This financing allows us to continue investing in electric mobility and to provide reliable, sustainable and high-quality public transport services across Finland.” “Koiviston Auto Group plays a key role in the green transition of public transportation in Finland,” comments Ville Poukka, Managing Partner at CapMan Infra. “This refinancing significantly strengthens the company’s financial platform and enables continued investments into electric buses at scale. We are pleased to see strong lender confidence in the company’s strategy, operational performance and long-term growth prospects.”

Fingrid – Update of EMTN Programme

We advised Fingrid Oyj on the Finnish law aspects in the update of a EUR 3 billion Euro Medium Term Note programme (EMTN). Notes issued under the programme may be listed on the Irish Stock Exchange. Fingrid operates Finland’s main electricity transmission grid and all significant cross-border transmission connections. The main grid is the backbone of the electricity transmission network, to which major power plants, industrial plants and regional electricity distribution networks are connected.

Search from the site.