Braskem Shares Soar 26.2% After Report of Abu Dhabi State Oil Company Joining Apollo Takeover

By Jeffrey T. Lewis

SÃO PAULO--Braskem shares leapt 26.2% Friday after Brazilian newspaper Valor reported that Abu Dhabi's state-owned oil company would team up on private equity manager Apollo Global Management's bid to buy the Brazilian petrochemical company.

Shares reached 24.25 reais, the equivalent of $4.92, and were down 24% from the end of last year through Thursday's close. Brazil's benchmark Ibovespa stocks index was up about 2.6% in mid-afternoon trading.

Valor, citing sources close to the dealings, reported Friday that Apollo and the Abu Dhabi National Oil Company (ADNOC) presented their plans Friday morning to offer BRL47 per share to the creditor banks of Braskem's largest shareholder Novonor, the Brazilian industrial conglomerate formerly known as Odebrecht.

Novonor owns about 38% of Braskem. Braskem's second-largest shareholder, Brazil state-backed oil giant Petróleo Brasileiro, or Petrobras, owns about 36%.

Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com

(END) Dow Jones Newswires

May 05, 2023 14:38 ET (18:38 GMT)

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