SAO PAULO, Sep 30 (Businesshala) – Brazilian conglomerate Novonor, its creditor banks and state-controlled oil company Petrobras are expected to take the first steps to divest from petrochemical company Braschem SA in the fourth quarter, three sources with knowledge of the matter said. he said. .
Novoneer, formerly known as Odebrecht, is discussing plans for multiple share offerings with its creditors. The first will unload the Novonor-owned Braskum Preferred Shares in the following months. Sources said Petrobras, a minority shareholder in Braskem, has been invited to join all the shares and split the proceeds.
Sources said the first offering could reach around 9 billion reais ($1.65 billion) if Petrobras also participates.
After selling the preferred stake, equivalent to about 20% of Brascam’s capital Novonor, its creditors and Petrobras will discuss the best time frame to sell their common stock, said the sources, who sought anonymity to disclose the private talks. Of.
Novoner and Petrobras declined to comment on the matter.
Before the next share offering, the company may complete the listing of its shares on Novo Mercado, a segment on the Brazilian Stock Exchange with high standards for corporate governance.
But creditors and shareholders want to sell the stake as soon as possible to avoid a share offering months ahead of a controversial presidential election in Brazil that is expected to create market volatility.
The process is being managed by some of Brazil’s biggest banks, which lent billions of dollars to the former Odebrecht and were dismayed by the time it took the company to recover funds. The former Odebrecht was a major player in the country’s car wash corruption scandal, and is now under bankruptcy protection.
Novonor’s 38.3% stake in Brascom is the collateral for the largest loans. Creditors have decided to sell Brascam through share offerings because no buyer emerged for the entire company during the formal M&A competitive process managed by Morgan Stanley at the request of Novoneer.
Sources said other bids for some parts of the business were considered too low.
However, it is clear that disinvestment cannot be done in a single share offering. Although the banks have priority in receiving the proceeds of the Brascom sale, they are coordinating an exit strategy through a number of offerings with Petrobras, the owner of 36.1% of Brascom.
Brascom shares are up 150% this year, driven by higher prices for resins and lower debt, while the broader Ibovespa index is down 6%. The company, which is also settling disputes in Mexico and the Brazilian state of Alagos, has a market capitalization of 47 billion reais. ($1 = 5.4386 Rees) (Reporting by Carolina Mandel and Tatiana Bautzer in So Paulo Editing by Christian Plumb and Matthew Lewis)