Brazilian petrochemical giant Braskem is "ready for due diligence on all of its operations" after getting a new multibillion offer on a controlling stake in the company, it said.
But the firm's main shareholders — fellow conglomerate Novonor and state-controlled oil company Petrobras — will decide on any further steps, Braskem's chief financial officer Pedro Freitas said.
Novonor — formerly known as Odebrecht — holds a 38.3pc stake in Braskem, while Petrobras has 36.1pc.
Abu Dhabi's state-owned Adnoc submitted a R10.5bn ($2.14bn) non-binding proposal to control Braskem late on 8 November. That is equivalent to R37.29/share. Adnoc's current offer requires Petrobras to remain as a Braskem's shareholder.
The offer sent to Novonor and creditor banks includes a cash payment for half of the resources. The remaining 50pc would be converted into US dollars, considering the exchange rate on the day of the transaction, and paid through an instrument senior to Adnoc's equity.
The instrument has a maturity period of seven years and interest of 7.25pc/yr, incorporated into the principal value until the end of the third year and in cash as of the fourth year.
The proposal also guarantees a 3pc stake for Novonor.
The offer could make sense to Braskem's business, but any and all decisions will be fully evaluated by Novonor before any action can be taken, Braskem's chief executive Roberto Bischopp said.
Novonor refused a joint bid by Adnoc and US investment firm Apollo in May. The latter has since abandoned negotiations.
Sales and production
Braskem's domestic resin sales fell by 1pc in the third quarter from a year prior, while volumes in Mexico, Europe and the US rose.
Domestic resin sales hit 884,000 metric tonnes (t) in the quarter, down from 892,000t in the third quarter of 2022. But sales were up by 12pc from the second quarter, driven mainly by household appliances, packaging, consumer goods, beverages, hygiene and construction sectors.
Braskem reported a $497mn loss in the third quarter, deeper than a $211mn loss in the same quarter of last year. The company maintained a strong cash position of $3.4bn, which guarantees the coverage of debt maturities in the next 75 months, it said.
