Activist investor Primestone urges Tennant to merge with Nilfisk (updated)

Nilfisk Holding A/S

13/12/2017 15:57

(Adds Primestone's stakes in companies, background) 
    COPENHAGEN/LONDON, Dec 13 (Reuters) - Activist hedge fund 
Primestone Capital on Wednesday urged U.S. cleaning equipment 
company Tennant  TNC.N  and Danish peer Nilfisk  NLFSK.CO  to 
consider merging after building up minority stakes in both 
firms. 
    "Primestone Capital owns more than 5 percent of both Tennant 
and Nilfisk and believes a combination of the two will generate 
extraordinary returns for shareholders," the London-based 
activist firm said in a filing with the U.S. Securities and 
Exchange Commission. It disclosed it had taken a 5.2 percent 
stake in Tenant.  urn:newsml:reuters.com:*:nFWN1OD0SH  
    Nilfisk, which was spun off from Danish cable maker NKT 
 NKT.CO  in October, and Tennant were not immediately available 
to comment. 
    Shares in Nilfisk rose 4.9 percent in Copenhagen after 
Primestone's statement, while Tennant traded up 0.8 percent in 
New York at 1532 GMT. 
    Primestone said it believed a merger would create earnings 
per share (EPS) accretion in excess of 85 percent for both 
companies. 
    It is following a trend, as 91 European companies have been 
subject to activist campaigns this year as of the end of 
November, according to industry tracker Activist Insight. 
    Primestone Capital, which does not disclose its assets under 
management, was set up in December 2014 by former Carlyle Group 
senior partners Franck Falézan, Benoît Colas and Jean-Pierre 
Millet.  
    Primestone owns a 5.6 percent stake in Nilfisk.  
 
 (Reporting by Stine Jacobsen in Copenhagen and Maiya Keidan in 
London, editing by Louise Heavens and Susan Fenton) 
 ((stine.jacobsen@thomsonreuters.com; +45 21 56 90 10; Reuters 
Messaging: stine.jacobsen.thomsonreuters.com@reuters.net)) 
 
Keywords: TENNANT NILFISK HOLDING/HEDGEFUNDS