2022 Exhibitions
Petrobras, Novonor shelf Braskem share offering due to lacklustre market
Brazilian state-run oil company Petrobras, along with conglomerate Novonor, have decided to postpone the sale via a share offering of their stakes in Brazilian petrochemical producer Braskem due to inadequate demand and price conditions. It was expected to be one of Brazil's most anticipated equity offerings of the year.
Braskem also confirmed the cancellation of the share sale, but noted both Petrobras and Novonor still planned to sell the stakes in the future.
According to Reuters, Petrobras and Novonor - which is in bankruptcy proceedings - had called off the move after lacklustre demand and as Novonor's creditors considered the price offered by investors too low.
"The instability of the capital market conditions resulted, at this moment, in levels of demand and price that are not appropriate for the transaction," Petrobras said in a securities filing.
Petroleo Brasileiro SA, as the company is formally known, said it still wants to sell its stake but will wait for favourable market conditions, without providing a timeframe.
Petrobras and Novonor decided to jointly sell their preferred shares in Braskem as part of a broader plan to fully divest from the firm.
Novonor, formerly known as Odebrecht, plans to use the offering proceeds mainly to pay creditors.
For Petrobras, the move is part of its plan to sell assets and reduce debt.
(PRA)
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