Braskem Says There’s a New Potential Buyer for Novonor’s Stake

(Bloomberg) — A new competitor has entered the race for a majority stake in Latin America’s leading petrochemical company Braskem.

A third company is carrying out due diligence on the company, Chief Financial Officer Pedro Freitas said on a conference call with analysts on Tuesday, without disclosing the potential bidder’s name. Petrobras, the petrochemical’s second-biggest shareholder, and Abu Dhabi National Oil Co. are also carrying out due diligence.

Local newspaper Valor reported on Tuesday that Petrochemical Industry (PIC), a subsidiary of Kuwait Petroleum Corp., is the third company doing due diligence, without saying where it got the information. Braskem didn’t immediately respond to a request for comment on who the bidder is.

Shares rose as much as 6.4% on Tuesday after it reported a gradual recovery in earnings, and then pared gains. Shares are heading to the highest close since September.

Read More: Braskem Gains As 4Q Shows ‘Gradual’ Recovery: Street Wrap

Petrobras Chief Executive Officer Jean Paul Prates said last month he would like to see Braskem take on a new investor to replace Novonor, its troubled controlling shareholder. Adnoc has made a non-binding offer for a majority stake in the petrochemicals and could become a partner with Brazil’s oil giant if the deal goes through.

Braskem made an additional provision of 1 billion reais ($200 million) for the collapse of a salt mine it operates in Brazil’s Northeast that risks engulfing part of a town.