Petrochemical company Braskem SA’s creditors and shareholders are planning to take the first step to divest from the company in the fourth quarter of 2021.
Over the upcoming few months, Brazilian conglomerate Novonor will unload its preferred shares in Braskem. They are planning to offer BRL9 billion (USD1.65 billion) or around 20% of Braskem’s capital to the market, if Brazil’s national oil firm Petrobras also participates.
After the sale of the preferred stake, Novonor, its creditors and Petrobras will discuss the best time frame to sell their common stock, according to some sources. Novonor would likely complete the listing of its shares on the Novo Mercado before the next share offerings, as the divestment could not be done in a single share offering.
Creditors have decided to sell Braskem using share offerings as no buyers for the whole firm emerged during a formal mergers and acquisitions (M&A) competitive process managed by Morgan Stanley at Novonor’s request.
Braskem’s creditors and shareholders aim to sell the stakes as soon as possible to avoid a share offering months before the presidential election in Brazil, which is expected to create market volatility.
The process is being managed by some of Brazil’s biggest banks, which are coordinating the exit strategy through multiple offerings with Petrobras.
