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Apollo, ADNOC offer $1.6B for stake in Braskem

Apollo Global Management and ADNOC International Ltd. have made an offer to buy Novonor's controlling share in materials maker Braskem SA.

São Paulo-based Braskem confirmed the offer in a May 9 financial filing. The firm had received confirmation of the offer from Novonor SA — its largest shareholder — on May 8.

The offer from New York investment firm Apollo and Abu Dhabi-based ADNOC is for 47 Brazilian reais ($9.49) per share. Based on valuations on May 10, Novonor's 38 percent stake in Braskem was worth about $1.6 billion. Braskem's per-share stock price has jumped since rumors of a purchase attempt first surfaced on May 5.

Braskem officials said in the filing that the nonbinding proposal depends on evaluation and negotiation with Petrobras, another major shareholder. They added that the firm "does not conduct any negotiations of its shareholders Novonor and Petrobras on the sale of its shareholdings."

Novonor — an industrial conglomerate previously known as Odebrecht and also based in Brazil — and Brazilian state-owned oil firm Petrobras first stated intentions to sell their stakes in Braskem in late 2021 and early 2022. Together, they own almost 75 percent Braskem.

Odebrecht was named in a massive corruption scandal in 2015. The firm later declared bankruptcy and also discussed selling its stake in Braskem in early 2021 in order to pay creditors.

Braskem, which has a U.S. headquarters in Philadelphia, is Brazil's largest petrochemicals firm and as one of North America's largest producers of polypropylene resin. The firm also is a major supplier of bioplastics.

Braskem employs 8,000 and posted sales of almost $19 billion in 2022.

Publication date: 10/05/2023

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This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 870292.