Braskem, the Brazilian chemical company, saw a spike of 19% in its shares following an offer from a unit of the Abu Dhabi National Oil Company. The offer, valued at 10.5 billion reais ($2.1 billion), is for a stake in Braskem.
After experiencing a 33% decline from the previous year until Wednesday’s close, the company’s shares reached BRL20.57. Meanwhile, Brazil’s benchmark Ibovespa stock index saw a 0.2% increase in early trading.
The offer has been made for approximately 35% of Braskem’s shares, which values each share at around BRL37.29. Currently, this stake is owned by Brazilian construction and engineering company Novonor, formerly known as Odebrecht.
Novonor had previously used its 38.3% stake in Braskem as collateral for a loan of about BRL14 billion from five banks. If the offer is accepted, Novonor’s stake in Braskem would decrease to as low as 3%.
To proceed with the transaction, all five banks involved – Itaú Unibanco Holding, Banco do Brasil, BNDES (Brazil’s state development bank), Santander (Brasil), and Banco Bradesco – must unanimously agree to sell the stake.
Additionally, if Novonor decides to sell its stake to a third party, state-controlled oil company Petrobras, which currently holds a 36.1% stake in Braskem, has the right to first refusal.