Bitumina Industries sells entire equity stake in Nynas AB
Bitumina Industries Limited has sold its entire 49.9% equity stake in Sweden’s naphthenic base oil producer Nynas AB. Nynas has signed a binding agreement with an investment vehicle managed by Davidson Kempner Capital Management LP for the stake sale.
Following completion of the acquisition, Davidson Kempner will be the largest individual shareholder of Nynas.
Bitumina Industries Ltd, a global bitumen company active in more than 100 countries, bought its stake in Nynas from Neste AB, the world’s largest producer of renewable diesel refined from waste and residues, in 2020. The transaction, which closed on September 15, 2020, was an important step in the company reorganisation of Nynas.
Davidson Kempner Capital Management LP is a U.S.-registered global institutional investment management firm with more than 35 years of experience and a focus on fundamental investing with a multi-strategy approach. Davidson Kempner has more than USD36 billion in assets under management. It employs more than 400 professionals in five offices, including New York, Philadelphia, London, Hong Kong and Dublin.
With around 1,000 employees, production facilities in Europe and offices in more than 30 countries, Nynas is dedicated to researching, producing and supplying specialty naphthenic oils and bitumen for a growing global market.
Davidson Kempner played an active role in the financial restructuring of Nynas which was undertaken during the second half of 2020, restoring Nynas balance sheet equity to SEK 4.6 billionon 31 December 2020, with an equity to assets ratio of 39.4%. Since that restructuring, Davidson Kempner has played an ongoing role in the financing of Nynas, providing further loan facilities to support Nynas’ working capital requirements and putting Nynas on a solid financial footing.
”We welcome Davidson Kempner as a shareholder in Nynas and look forward to the continued development of Nynas’ business with the strategic and strong financial backing that Davidson Kempner will contribute. We are very satisfied with our strong trading result in the first half of 2021 and will continue to pursue our mission to deliver long lasting, high performance specialty products for sustainable use in our industry with the support of Davidson Kempner, who already is one of the largest financiers of the company,” said Bo Askvik, Nynas president & CEO.
