Petrobras has support from Odebrecht to leave Braskem via the capital markets, says CEO

May 06, 2020

Petrobras obtained support from Odebrecht to transform Braskem into a company with no defined control, thus facilitating a future sale of its stake in the petrochemical company via the capital markets, said the president of the oil company, Roberto Castello Branco on Tuesday.

The executive considered, however, that it is necessary to wait for an improvement in the world economic scenario so that the necessary operations can be carried out – currently, with the pandemic of the new coronavirus, the transaction could not be attractive.

“I see that we have a good opportunity as the world economy recovers, volatility goes down, so we will be able to exit via the capital markets,” said Castello Branco, when participating in an online event promoted by the bank Credit Suisse.

The oil company had already announced last year its interest in listing Braskem on the Novo Mercado of the São Paulo stock exchange B3. To do this, the petrochemical company needs to have only common shares traded, in addition to following a series of high-level governance rules.

“Several obstacles were overcome, even Odebrecht’s position. Today we have a much better dialogue than we had about six months ago ”, said the CEO of Petrobras.

Currently, Odebrecht has 38.3% of Braskem, with 50.1% of the voting shares, while Petrobras has a total stake of 36.1%, with 47% of the voting shares, according to information from Company Website.

“The Alagoas issue was resolved, according to the banks, Odebrecht’s agreement to take the company to be a ‘corporation’, to have its shares converted into voting shares”, listed Castelo Branco, commenting on Petrobras’ steps to enable the divestment of its share at Braskem.

Petrobras seeks to dispose of its participation in the petrochemical industry as part of a broad divestment program that seeks to reduce debt and focus the company on deepwater oil exploration and production activities.

Odebrecht even negotiated the sale of its stake in Braskem to the chemical manufacturer LyondellBasell Industries, an operation that was awaited by Petrobras, which it could use to dispose of the asset. However, negotiations were closed in June last year, without success.

The president of Petrobras also said that several other assets are on the company’s radar for divestment.

Among these, he pointed out that the oil company expects to conclude this year the sale of the remaining 10% interest it holds in the NTS and TAG gas pipeline companies.

Source: TNPetroleo

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