Zabka’s $1.62 Billion IPO: Greenberg Traurig’s Legal Guidance in Warsaw Revival
Greenberg Traurig advised the Polish convenience store chain Zabka and its main shareholder, CVC Capital Partners, on Zabka’s initial public offering (IPO) worth 6.45 billion zlotys ($1.62 billion) on the Warsaw Stock Exchange in October. Lejb Fogelman, a corporate and private equity shareholder at Greenberg, described the IPO as a significant event that could lead to more large deals, signaling a recovery for Warsaw’s market after the impacts of COVID-19 and concerns from the Ukraine conflict.
At a time when some firms, like Hogan Lovells, are closing their offices in Warsaw, Greenberg Traurig continues to grow. Recently, the firm hired a team of seven lawyers specializing in project and structured finance, bringing their total to around 110 lawyers in Warsaw, including 17 shareholders.
Other firms such as A&O Shearman, Bird & Bird, Dentons, CMS, and DWF are also maintaining their presence in Poland and the CEE region. CMS executive partner Duncan Weston stressed that their office in Poland is crucial to their Central and Eastern European operations and remains strong.
The landscape for law firms in the region has shifted significantly over the past years. Many major firms, including Freshfields and Hogan Lovells, have exited Central and Eastern Europe. Freshfields closed its Bratislava office, while Hogan Lovells left Prague. K&L Gates sold its Warsaw office to DWF, and other firms have also reduced their presence.
Despite these closures, some firms like Linklaters, Clifford Chance, and Squire Patton Boggs still operate in the region. A&O Shearman has four offices in CEE, and Eversheds Sutherland recently expanded its services in Warsaw.
What impact will Zabka’s IPO have on the future of retail in Poland?
Interview with Lejb Fogelman: Insights on Zabka’s IPO and the Future of Warsaw’s Market
News Editor: Today, we are privileged to have Lejb Fogelman, a corporate and private equity shareholder at Greenberg Traurig, with us to discuss the recent initial public offering (IPO) of the Polish convenience store chain, Zabka. The company, along with its main shareholder CVC Capital Partners, recently launched a successful IPO valued at 6.45 billion zlotys, approximately $1.62 billion, on the Warsaw Stock Exchange. Welcome, Lejb!
Lejb Fogelman: Thank you for having me.
News Editor: Let’s dive into Zabka’s IPO. Why do you consider this event to be significant for the Polish market, especially post-COVID-19?
Lejb Fogelman: The Zabka IPO is a pivotal moment for several reasons. First, it demonstrates investor confidence in the Polish market as it recovers from the pandemic’s impacts. Moreover, it may encourage other companies to consider going public, potentially leading to a wave of large deals. This signals that Warsaw is re-establishing itself as an attractive destination for investment, despite previous uncertainties related to the COVID-19 pandemic and the ongoing geopolitical tensions due to the Ukraine conflict.
News Editor: What does this IPO mean specifically for Zabka’s future and its expansion plans?
Lejb Fogelman: For Zabka, this public offering provides not just capital but also greater visibility and credibility in the market. It will enable them to accelerate their expansion plans and enhance their operational capabilities. The funds raised can be utilized for further investment in technology, logistics, and overall customer experience, which are critical in the highly competitive retail sector.
News Editor: Observing market shifts, some firms like Hogan Lovells are closing their Warsaw offices, while Greenberg Traurig continues to expand. What do you attribute this growth to?
Lejb Fogelman: Our growth can be attributed to a firm commitment to providing outstanding legal services in a dynamic market environment. Our ability to adapt to changing market conditions while still attracting top talent—such as our recent hire of a team of seven lawyers specializing in project and structured finance—reflects our strategy of investing in key practice areas that are crucial for our clients during this recovery phase.
News Editor: With the recent trends in the legal market, what do you foresee in the near future for Warsaw and its financial landscape?
Lejb Fogelman: I anticipate a robust recovery for Warsaw’s financial landscape. As confidence returns, we may see an influx of capital, not only from local players but also from international investors seeking opportunities in Central and Eastern Europe. The Zabka IPO could be the catalyst for this attentiveness toward the Polish market. Firms willing to diversify and adapt will likely thrive, creating a vibrant ecosystem for investments and economic growth.
News Editor: Thank you, Lejb, for sharing your insights with us. It seems that exciting developments are on the horizon for the Polish market.
Lejb Fogelman: Thank you for the opportunity. We’re looking forward to witnessing the evolution of the market as it rebounds and grows.
Stay tuned with newsdicrectory3.com for the latest updates on market developments and financial insights.
According to David Dederick, a former Weil partner now with Bird & Bird, the number of international law firms in Budapest has sharply declined since their peak in the 1990s as foreign investors retreated, particularly after the onset of economic nationalism in Hungary.
Pawlowski of DWF noted that there is potential for profitable growth in Poland. He highlighted that local firms can compete effectively against large U.S. and UK firms by offering services at lower rates and adjusting their business models to the regional market.
Finally, the rise of national firms in Poland presents new competition. Many former Big Law lawyers now work at local firms, which can offer competitive services for international deals. Kicun, managing partner at Reon Legal, suggests that Poland’s economy and population may lead to a legal market comparable to Germany’s, where national firms challenge international ones.