2023 - 2024 Exhibitions
Apollo/Adnoc make offer of US$7 bn for stake in Braskem
Brazilian petrochemical firm Braskem SA says it has received an offer of as much as R$37.5 billion (around US$7.6 billion) from Abu Dhabi National Oil Co. and US-based asset management firm Apollo Global Management. The offer was made to its controlling shareholder Novonor.
Novonor owns 38.3% of the petrochemical company’s total capital, and state-run oil giant Petrobras owns 36.1%. The remaining 25.6% is held by smaller investors.
In a securities filing, Braskem said the bid stood at R$47 per share, with R$20 to be paid in cash and R$20 through perpetual debentures at a yearly rate of 4%. The other R$7 would be paid via warrants.
The bid represents a 79% premium over Braskem's closing price of R26.28 per share recently.
Novonor has said that the offer was being evaluated and no decision had been made. Braskem noted talks with Petrobras would also be required.
The bid was also forwarded by Novonor to creditor banks, as its stake in Braskem is pledged as collateral. The company, formerly known as Odebrecht, cannot sell it without the approval of creditors.
Meanwhile, the terms of the non-binding offer made jointly by Apollo and Adnoc have divided opinion in the market, according to a report.
Apollo’s previous offer had already displeased one of the creditor banks, as it had requested exclusivity in the due diligence process about six months ago. Another lender, which also holds shares as collateral, defended Apollo’s offer on this basis, but was defeated.
Adnoc’s entry reportedly made the proposal “more palatable”, said the report.
Novonor owes almost R$15 billion to Bradesco, Itaú Unibanco, Santander, Banco do Brasil, and Brazilian Development Bank (BNDES), a debt guaranteed by all the Braskem shares held by the former Odebrecht.
Petrobras had indicated to potential buyers before the change of command that it would not sell its stake for less than R$43 per share.
In addition, there are other interested parties in Braskem such as petrochemical company, Unipar, which is interested in the company’s assets in São Paulo, and J&F Investimentos, owner of JBS, is still interested in taking over Braskem. Depending on the terms of the deal with J&F, the holding company of the Batista family, Novonor could remain a minority shareholder in the company.
A stake in Braskem would allow Adnoc a stepping stone into the Americas.
(PRA)
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