A unit of Abu Dhabi National Oil has put forward an offer of 10.5 billion reais to purchase a major portion of Brazilian construction and engineering company Novonor’s stake in chemical company Braskem. This offer, valued at $2.1 billion, equates to approximately BRL37.29 per share, according to Braskem.
Novonor, previously known as Odebrecht, currently holds a 38.3% ownership in Braskem. Should ADNOC’s offer be accepted by Novonor and its creditor banks, Novonor would retain a stake of up to 3%.
Under the proposed deal, ADNOC would pay half of the total amount in cash to the banks upon completion, while the remaining half would be fulfilled through an instrument senior to ADNOC’s equity with a maturity period of seven years, as reported by Braskem.
For several years, Novonor and the banks have been seeking to sell their stake in the chemical producer. However, Petrobras, a state-controlled oil company that already owns 36.1% of Braskem, has the first right of refusal if Novonor decides to sell to a third party.
It’s important to note that the offer is non-binding and subject to ADNOC’s due diligence process. Additionally, any potential liabilities related to an incident in the Brazilian state of Alagoas or any other obligations must be assessed. Furthermore, ADNOC would need to negotiate a shareholders’ agreement with Petrobras, according to Braskem.
