Odebrecht Starts Braskem Sale
Brazilian conglomerate Odebrecht has begun the initial process to sell up to its full shareholding in polyolefins producer Braskem. Odebrecht is selling its stake in order to fulfil commitments it made to creditors, both before and during its bankruptcy, Braskem said.
A Brazilian judge on Jul. 27 approved Odebrecht’s restructuring plans, rejecting objections from creditors. Odebrecht filed for bankruptcy protection in June 2019 in order to restructure $13 billion of debt after its involvement in Brazil’s “car wash” money laundering scandal that emerged in 2014.
Odebrect owns 38.3% of Braskem’s outstanding shares and 50.1% of its voting shares, while Brazilian state-energy producer Petrobras holds 36.1% of outstanding shares and 47% of voting shares.
Petrobras said last December that it wanted to sell its Braskem stake within the next 12 months. Last month, the company was said to be within six months of reaching a consensus with Odebrecht on a new shareholder agreement for Braskem, which will see preferred shares converted to a single class of common shares, facilitating a sale.
LyondellBasell was in talks with Odebrecht earlier last year about buying Braskem but the companies called a halt to negotiations in June 2019.
Author: Elaine Burridge, Freelance Journalist
