Value Creation in a Corporate Reorganization: A Case Study on the Reorganization of Nynas

Sammanfattning: In this paper, we analyze the reorganization of Swedish oil company Nynas. Nynas is a Swedish manufacturer of naphthenic oils and bitumen products, founded in 1928 by industrialist Axel Ax:son Johnson. Following the U.S. Treasury Departments' Office of Foreign Assets Control sanctions on Nynas majority shareholder, Venezuelan state-owned oil company Petróleos de Venezuela, Nynas was, as a result of this, listed as a specially designated national. This status severely hampered Nynas ability to conduct business, leading to the company applying for reorganization in Sweden at the end of 2019. The aim of this study is to analyze how the corporate reorganization process in Sweden created value for Nynas, as well as evaluating the two equity transactions that took place during the reorganization. We find support that certain areas of the reorganization process created value for both shareholders and stakeholders. Some measures that were taken, such as the establishment of a moratorium and the utilization of the government wage guarantee, could only have been made due to the firm being in this reorganization process. Other measures and decisions could have been made regardless of the firm going through a reorganization. Moreover, we find that PDVSA's divestment of a portion of its shares created value, as it allowed Nynas to be taken off the SDN list and resume business as usual. We also find that Neste's divestment of its stake was value destroying for all parties involved, primarily due to excessive willingness to sell, combined with a lack of sellers' due diligence.