Braskem sale negotiations with Tanure fund persist despite end of exclusivity window
The negotiations for Brazilian firm Novonor, formerly known as Odebrecht, to sell a controlling stake in petrochemical company Braskem to a fund backed by businessman Nelson Tanure are still ongoing, despite the expiration of a 90-day exclusive negotiation period. Braskem disclosed in a securities filing on Friday that talks are continuing, even though both parties have not yet reached an agreement.
The exclusive window has closed without a deal being reached that would absolve the fund from potential liability in a lawsuit alleging that Braskem’s salt mines have caused land subsidence in the city of Maceio, leading to evacuations. A source familiar with the Tanure-linked investment fund Petroquimica Verde has stated that no deal will be finalized until they can ensure that the environmental liabilities will not be transferred to them or their creditors.
Tanure emphasized earlier this month that resolving the issue of environmental liability is a prerequisite for the deal to proceed. Another source close to the negotiations affirmed that addressing the environmental concerns has been a key focus from the start of discussions with Tanure.
Despite the unresolved issues, Novonor’s decision to continue negotiations with Tanure is seen as a positive sign, signaling to banks that were hesitant about the situation. Meanwhile, private equity firm IG4 Capital is reportedly preparing a rival bid for Braskem’s controlling stake. Their plan involves consolidating Novonor’s bank debt and exchanging it for Braskem shares.
As a result of these developments, Braskem’s shares saw a 2.4% increase in afternoon trading, closely mirroring the gain of Brazil’s benchmark stock index Bovespa, which rose by approximately 2.5%.
Ultimately, the outcome of these negotiations will have significant implications for the future of Braskem and its stakeholders. The ongoing discussions highlight the complex nature of corporate transactions and the importance of addressing environmental concerns in business dealings. The resolution of these issues will be closely monitored by investors and industry observers alike.
(Reporting by Luciana Magalhaes and Gabriel Araujo. Writing by Isabel Teles. Editing by Mark Potter and Alistair Bell)
