Braskem to be sold to private equity firm IG4
After two failed attempts to sell it, Brazilian petrochemical producer Braskem said Novonor (formerly known as Odebrecht) has agreed to transfer nearly all of the shares it holds in Braskem to private equity firm IG4 Capital, the firm said in a regulatory filing.
Under the deal, IG4 would share control of Braskem with state-run oil giant Petrobras, the company's second-largest investor, while Novonor would retain a 4% stake, according to a securities filing. The transaction still depends on approval from Brazil’s antitrust regulator CADE.
The Paulo Mattos-led asset manager will acquire R$20 billion in credits backed by Braskemshares through a direct lending fund (FIDC), which will hold 34.3% of the Brazilian company.
Novonor’s stake in Braskem was held as collateral by a group of banks for loans that had gone unpaid; the deal grants the fund an initial 60-day period to conclude the negotiation of a potential transaction.
Petrobras said in a separate securities filing it would monitor developments related to the announcement and assess the terms and conditions of the transaction.
For years the oil major sought to increase its influence over the beleaguered petrochemical firm, as it sees potential synergies between the two companies.
The state-run oil company expects a new shareholders agreement would grant it one more board seat at Braskem, bringing its total to five out of the 11 available, and the right to appoint four of the eight director-level roles, a source close to the company told Reuters.
A new controlling shareholder could help Braskem's prospects, as the company has struggled with tight petrochemical margins and ongoing liabilities tied to neighbourhoods of Maceio damaged by salt mining operations in northeastern Brazil.
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