Manager IG4 submitted this Tuesday to Cade, the body that regulates competition in Brazil, the agreement to buy Novonor’s (formerly Odebrecht) stake in Braskem (). The business is valued at R$20 billion.
IG4 advises the manager Vórtx Capital and last week signed a “definitive and binding” agreement with the banks Bradesco, Itaú, Santander, Banco do Brasil and BNDES, which hold Braskem shares given as collateral in the Novonor judicial recovery process.
Currently, Novonor controls Braskem. The construction company holds 50.1% of the voting capital of the petrochemical company, while Petrobras owns 47%. The remainder of the shares are in the hands of minority shareholders. Braskem is listed on the São Paulo Stock Exchange (B3).
In a statement, Petrobras informed that it will be a consenting participant in the process, that is, it will formally participate in the contract. According to the state-owned company, the success of the agreement will depend on the terms of a potential new Shareholders’ Agreement, “which still remain subject to approval by Petrobras’ deliberative bodies”.
In a note, the company stated that “the progress of the negotiations does not affect the rights of Petrobras, which will continue to monitor and evaluate the effects of the potential operation to, if applicable and at the appropriate time, decide whether or not to exercise its rights provided for in the current shareholders’ agreement or to enter into a new agreement, when appropriate”.
Behind the scenes, the state-owned company has been pushing for the new agreement to allow its participation in the management of Braskem, with the appointment of directors and advisors. Today, Petrobras does not participate in the company’s day-to-day operations.
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IG4 has two months to complete the negotiation with Novonor. If the transaction is successful, IG4, through an investment fund, will hold 50.1% of Braskem’s voting capital and 34.3% of the company’s total capital, becoming the holder of common shares (ON, with voting rights) and preferred shares (PN, without voting rights), respectively.
In the statement released last week, Braskem informed that Novonor will maintain preferred shares equivalent to 4% of the company’s capital.
Since 2018, Novonor has been trying to divest its stake in Braskem. There have already been negotiations with LyondellBasell, J&F (holding of the Batista family, controlling JBS), Apollo Global Management, Adnoc (state oil company in the United Arab Emirates), Petrochemical Industries Company (PIC), a subsidiary of Kuwait Petroleum Corporation (KPC), Unipar — Braskem’s main Brazilian rival — and businessman Nelson Tanure.
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