BITE Group (f.Project Bella) Equity Investment

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 40750

Status Complete

Location

Regional

Business Sector

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 40750

Status Complete

Location

Regional

Business Sector

Notice Type

Private

Approval Date

21 Oct 2009

Disclosure date

02 Dec 2024

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project description

Project Description

This PSD relates to a historical Bank project approved some years ago, and does not represent a new approval, or allocation of new funds. Disclosure of this PSD was deferred in accordance with the transparency framework in place at the time, but due to an administrative oversight, was not subsequently disclosed

The Bank made two investments in Bite in 2007 and 2009. The EBRD approved the first commitment of up to EUR 10 million in Bite Co-Investment LP to allow the Company to develop its mobile telephony business in Lithuania and Latvia. Details of a subsequent equity investment of EUR 2.5 million to de-leverage the Company and thereby protect the initial equity investment are set out here.

Project Objectives

The EUR 2.5 million capital call planned at the time of approval of the transaction permitted the Company to improve the Company’s competitive position by decreasing its financial leverage, and position itself to capture upside on new equity investment by purchasing and cancelling its own discounted senior subordinated notes.

Transition Impact

Supporting the Company’s capital position achieved an increase in the Company’s market share in the years following the transaction. Further, in addition to demonstrating the use of a leveraged buy-out (LBO) model in Latvia, the transaction resulted in the introduction of new products (both 3G and Blackberry service) in Latvia and Lithuania.

Additionality

EBRD’s participation played an important role at the time of the transaction, both by providing comfort for the successful closing of the largest LBO transaction in the region and helping the Company to weather the difficult environment by injecting additional equity in 2009. In addition, the transaction was complex, involving a Company that was not yet EBITDA positive, reducing investor appetite to participate.

Environmental and Social Summary

This project was classified as Environmental Category B, and found to be unlikely to be associated with significant environmental or social issues. The Company was required to ensure that the project met applicable national and EU standards on issues relating to environment, health and safety and labour. Further, the Bank continued to monitor the client’s environmental and social performance using annual reporting.

Technical Cooperation

n/a - none

Implementation Summary

The largest LBO in the Baltics at that time, the transaction was a successful demonstration of the product in this region.

In February 2016, the Company was sold to Providence Equity Partners, a premier global Private Equity and credit investment firm, further supporting the Company’s strategy of regional consolidation in the mobile and fixed telecommunications sector.

Transition impact

ETI Score:60

PSD last updated

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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