On The Legal Aspects Of The Purchase Of TVR Engineering by A Russian Oligarch’s Son
Leon Kaye Solicitors were the lawyers who acted for a Russian Oligarch’s son on the acquisition and purchase of a family run business in Lancashire called TVR Engineering Limited. TVR with its iconic and well loved status was one of the last remaining wholly British-owned sports car manufacturers employing around 400 people and based in Blackpool.
Leon Kaye Solicitors handled the complete legal acquisition process which involved drawing up the legal documentation on behalf of our client. Our firm handled the whole acquisition process which involved negotiations with TVR Engineering’s legal team. The negotiations to purchase TVR lasted only two weeks with the all documentation agreed by the other side within a matter of days.
Our firm received a “due diligence bundle” which had detailed documents, which would be reviewed and considered for the purposes of acquisition. It included details of accounts, trading contracts, debtor and creditor lists and employee summaries. The sale of TVR was completely structured as it was the sale of its entire shareholding by TVR Engineering. This would result in the company, its brand, its subsidiaries and its entire heritage being acquired by our client with legal advice from Leon Kaye Solicitors.
Leon Kaye Solicitors were instructed to win a contract race and in order to get the matter to a speedy conclusion we raised a number of enquiries and also made changes to the documentation in order for the contract to go through. Leon Kaye Solicitors also prepared the sale and purchase agreement and ancillary documents and these were sent to the TVR’s lawyers for consideration.
Following a period of intense discussion and negotiaton between ourselves and TVR Engineering an agreement was reached and legal contracts approved.
A completion meeting took place about one week later in Blackpool. There was wide news coverage in the media including The Times, Daily Telegraph and the Financial Times who wrote “Mr Smolensky (sic) is the latest super-rich Russian to splash out on British institutions. He follows Roman Abramovich who bought Chelsea Football Club last year.” The Times wrote “The new owner of one of the few remaining British sports car manufacturers … Nikolai Smolenski is known as the “baby oligarch” and believed to be the country’s (Russia’s) youngest rouble billionaire”. The Moscow Times “Nikolai Smolenski … is now behind the wheel of TVR a boutique auto maker that rolls out some 1000 top-end road rockets a year”. Daily Mail “Sports car maker TVR was sold to Russian businessman yesterday in a surprise multimillion pound deal”.
As has been shown by the this case study, tactical appreciation of the strategic position of the client and the correct handling of negotiations, and careful preparation, are vital elements in any transaction whether it is the sale or purchase of a company, an investment or flotation. This can save a lot of time and money coupled with confidence that the matter has been dealt with properly by us.
Please contact Leon Kaye on telephone 020 7 228 2020 or 020 7095 0930 or email info@:leonkaye.co.uk for further information about our company law work.