Why is Braskem (BRKM5) soaring on the stock market today?

Why is Braskem (BRKM5) soaring on the stock market today?
Why is Braskem (BRKM5) soaring on the stock market today?

Petrochemical shares led Ibovespa’s rises in trading this Thursday (9)

Braskem shares (BRKM5) were among the biggest risers this Thursday (9) on B3. At around 12:20 pm, petrochemical shares rose 14.76%, to R$19.83, while Ibovespa, the Brazilian stock market reference index, rose 0.64%, to 119,934 points.

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The positive movement occurred even after the company reported a loss of R$2.418 billion in the third quarter of 2023. The result, reported the day before, was 119.2% higher compared to the losses of R$1.103 billion observed in the same period in 2022.

But what then explains the spike in the stock market this Thursday? Earlier, Braskem confirmed that it had received a new offer from Adnoc, the state-owned oil company in Abu Dhabi, to purchase the stake in Novonor (formerly Odebrecht).

“In relation to the indirect stake held by Novonor of 38.3% of Braskem’s total share capital, the payment of an Equity Value (‘Equity Value’) of R$ 10.5 billion, being assured to Novonor, after the closing of the transaction, a minority stake representing up to 3% of the total shares currently issued by Braskem, which implies a value of R$37.29 per share”, details the company in a relevant fact.

“The amount of R$10.5 billion will be paid by Adnoc directly to the Financial Institutions as follows: (i) 50% in cash, on the date of closing of the transaction; and (ii) the remaining 50% converted into US dollars, on the closing date of the transaction, and paid through a senior instrument to Adnoc’s equity, with a maturity period of 7 years and annual interest of 7.25%, incorporated into the principal value until the end of the 3rd year and in cash from the 4th year onwards”, adds the statement.

The proposal, according to Braskem, is conditioned, among other usual conditions in transactions of this nature, “on satisfactory completion by Adnoc of due diligence; calculation of possible additional liabilities arising from an event in Alagoas; and the absence of unaccounted for or unreported material contingent liabilities.”

Finally, the petrochemical company highlights the need to “align and celebrate a new shareholder agreement with Petrobras”, which has preference in the business and can cover any offer.

Financial Intelligence is a journalistic channel and this content should not be interpreted as a recommendation to buy or sell investments. Before investing, check your investor profile, your objectives and always stay well informed.

The article is in Portuguese

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