Braskem’s first stock offering could reach R$9 billion, sources say

(Reuters) – The first stock offering for the divestment of stakes by shareholders in Braskem should take place in the fourth quarter and could reach 9 billion reais, according to three people with knowledge of the matter.

Novonor (formerly Odebrecht), creditor banks and Petrobras are discussing a plan to sell the company in several equity offerings.

The first would be later this year, including only preferred shares held by shareholders. If Petrobras adheres to the offer proposed by Novonor and creditor banks, this first transaction could reach 9 billion reais, the sources said.

After the sale of preferred shares, shareholders and creditors must decide the best strategy for the sale of common shares.

One way to maximize the value of upcoming offers would be to migrate Braskem to the Novo Mercado, the highest governance segment at B3. It is not yet clear when the other offers would be made, but the idea is not to take too long to avoid the volatility of the pre-election period, according to the sources.

The process is being coordinated by Novonor’s biggest creditors, who have been trying for some years to recover billions of reais lent to the conglomerate, which entered into judicial recovery after involvement in corruption investigated by the Lava Jato operation.

Creditor banks and shareholders decided to sell through a share offering because the M&A process organized by Morgan Stanley did not attract the expected interest.

According to one of the sources, there was no proposal for the whole of the company and the proposals for parts of the business were low.

Although Novonor’s creditors have priority in receiving funds from the sale of Braskem, it was decided to include Petrobras, which owns 36% of Braskem, to design a coordinated exit strategy.

The petrochemical stocks soared 150% this year, with the increase in resin prices and a reduction in its indebtedness, well above the performance of the Bovespa index, which is losing 6% in the year. Braskem has also been solving problems it had in Mexico and the State of Alagoas, and its market capitalization reaches 47 billion reais.

Novonor and Petrobras did not immediately comment on the matter.

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