Banks negotiate sale of Braskem debt to Arabs – 05/21/2023 – Panel SA

Creditors from Novonor (formerly Odebrecht) are negotiating the sale of R$14 billion in debt from Braskem to the Arab state-owned Adnoc and the American fund Apollo.

With the deal, they will receive the petrochemical shares pledged by Odebrecht to Santander, BB, BNDES, Bradesco and Safra.

This arrangement, according to people participating in the negotiations, would be a step prior to the future negotiation of the purchase of these papers by the offerors.

It would also work as Novonor’s strategy to avoid paying billions in taxes, which, according to the negotiators, would occur if the banks foreclosed on the debt and, immediately afterwards, sell the shares to Adnoc and Apollo.

In its communiqué, Petrobras, which owns 38% of Braskem’s voting shares, said it had received a letter from Adnoc and Apollo with the offer. She said that both “expressed interest in discussing potential business with Petrobras”.

As part of the shareholders’ agreement, the Brazilian state-owned company has preference in the purchase of shares in the controlling block.

Recently, Novonor refuted the non-binding offer (which starts negotiations) from the Adnoc Arabs and the Apollo fund, who, in practice, would be willing to pay between R$ 27 and R$ 30 per share (considering discounts and commitments company performance).

The offer would remain the same now. However, how the deal can be done will make a difference from a “price” point of view.

In addition to the tax issue (a benefit that is estimated to be around R$ 3 billion), they would assume the responsibilities and costs in Alagoas, where the exploration of a rock salt mine caused the lowering of the soil in a neighborhood of Maceio.

With Diego Felix

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