Read this Tuesday’s edition of the FolhaMercado newsletter (13) – 06/13/2023 – Market

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New bid for control of Braskem

Braskem shares closed at a high of 6% this Monday on the Stock Exchange after Unipar communicated to the market an offer to take control of the petrochemical company.

In numbers: Unipar expects to keep 34.36% of Braskem’s total shares, valuing each one at BRL 36.50. The papers closed this Monday in BRL 27.15.

Understand: the offer is for the stake that Novonor (formerly Odebrecht) has in Braskem, from 38.3%. These papers are in the hands of creditor banks — Santander, BB, BNDES and Bradesco.

• Unipar’s offer adds up to around BRL 10 billionwhich would be a discount in relation to the amount borrowed by banks.

• It also predicts that Novonor would continue with a minority position of 4% at Braskem.

For the business to go forwardit must be accepted by the banks, by Novonor and by Petrobras, which has 36.1% of Braskem and preemptive right to purchase the petrochemical company.

According to the column Panel SA, Unipar believes that its proposal will be accepted by Novonor and Petrobras. Company internal data show that the offer is 40% higher than that presented by Adnoc.

The obstacle, in addition to the banks, is the compensation to be paid to the state of Alagoas for the sinking of the ground in a neighborhood of the capital Maceió, the result of an ore exploration by Braskem.

Who’s who in the petrochemicals dispute:

• Braskem: is the sixth largest petrochemical company in the world and the largest producer of thermoplastic resins in the Americas. It closed 2022 with a net debt of $4.8 billion (BRL 23.4 billion).

• join: leader in the production of chlorine and soda and the second largest producer of PVC in South America. Debt-free, net income of BRL 1.3 billion in 2022. Braskem is its raw material supplier.

• Novonor (former Odebrecht): he has 38.3% of Braskem shares that are in the hands of banks as a guarantee for a debt of R$ 14 billion.

• Petrobras: with 36% of the capital of the petrochemical company, it is considering exercising its preemptive right and acquiring control, as reported by the Panel SA in May.

• Adnoc: Arab state company that presented, together with the Adnoc fund, an offer of up to R$ 47 per Braskem share. Novonor and Petrobras, however, assessed that the final value of the offer would yield shareholders between R$ 27 and R$ 30 per share.

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Agreement foresees ‘lock-up’ for 3G trio

The trio of billionaires Jorge Paulo Lemann, Marcel Telles and Beto Sicupira, reference shareholders of the Americanas retailer, may spend up to three years without being able to sell shares in the retailer.

Understand: in the market, the period without being able to trade shares is called “lock-up” and is common in initial stock offerings (IPOs).

The idea is that the shareholders of companies that come to the market do not sell their positions as soon as it debuts on the Stock Exchange, using information that only they had when the capital was closed.

In the case of Americanas, the freezing period for the trio of shareholders may serve to ensure that they do not just leave the issue in the hands of the banks – the creditors will have a significant stake in the retailer from the conversion of part of the debt into shares.

Where is the negotiation? Major creditor banks said during first-quarter earnings releases that they expected a deal with the company on debt this month.

Two weeks ago, the retailer’s debenture holders (debt holders), who control almost R$ 11 billion of the company’s liabilities, expressed opposition to the judicial recovery plan presented by the company.

• Among other proposals, the document projects that they would have to accept discounts of at least 70% in the amount owed by the company.

• The official vote on the recovery plan has not yet been set.

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George Soros passes the baton

Billionaire George Soros, 92, will transfer control of his economic empire to his son Alexander Soros, 37.

• In an interview with the Wall Street Journal, Alexander said he was more “political” than his father.

Who is Soros Sr.: Born in Hungary, Soros became a billionaire in the financial market. He gained considerable notoriety in the United Kingdom when he profited around US$ 1 billion betting that the pound would devalue in 1992.

• Soros founded the Open Society Foundation, responsible for directing the family fortune since the 1990s to projects that promise to strengthen democracy in dozens of countries.

• The organization spends approx. $1.5 billion a year supporting progressive causes, educational organizations and human rights in over 120 countries.

Who is Soros son: the second youngest in the family will take control of a fortune valued at $25 billion (BRL 122 billion).

• Most of the assets will be allocated to the Open Society in the coming years, an entity whose council has already been chaired by Alexander since the end of last year.

• He wants to include topics such as the right to vote, reproductive rights and gender equality on the foundation’s agenda – in addition to having a more US-focused program.

• “Our side has to get better at being more patriotic and inclusive,” he said. “Just because someone votes for Trump doesn’t mean they’re lost or racist.”

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Readjustment in individual plans

The ANS (National Supplementary Health Agency) approved this Monday the annual readjustment of individual and family health plans in the country. The maximum index defined was 9.63%.

Understand: the ceiling is valid from May 2023 to April 2024 and reaches about 8 million of beneficiaries, according to the ANS. The calculation is based on the variation in expenses with health plan beneficiaries and the previous year’s inflation.

• The consumer can still have two readjustments of the health plan in the same year, understand here.

Is different: collective plans (corporate or membership), which add 50.6 million of users in the country, are not subject to this limit and are readjusted through negotiations by the operators themselves.

• In April, a report by Sheet showed that, among the collective membership plans, there were rises of almost 60% in 2023.

Neither Greeks nor Trojans: the readjustment approved by the ANS displeased both consumer protection agencies and companies in the sector.

• The Idec (Brazilian Institute of Consumer Protection) stated that the ceiling of 9.63% “once again exceeds the limit of what is reasonable”.

• The Abramge (Brazilian Association of Health Plans) says that the limit is “below the real needs of cost recomposition”.