ADNOC Offers BRL10.5 Billion to Buy Most of Novonor's Stake in Braskem

By Jeffrey T. Lewis

SÃO PAULO--A unit of the Abu Dhabi National Oil has offered Novonor 10.5 billion reais to buy most of the Brazilian construction and engineering company's stake in chemical company Braskem.

The offer, for the equivalent of $2.1 billion, works out to about BRL37.29 per share, Braskem said. Novonor, the engineering and construction company formerly known as Odebrecht, owns 38.3% of Braskem's total shares, and ADNOC's offer would leave Novonor with up to a 3% stake.

If the offer is accepted by Novonor and its creditor banks, ADNOC would pay half of the amount in cash to the banks at the closing of the deal, with the other half paid through an instrument senior to the Abu Dhabi company's equity with a maturity period of seven years, Braskem said.

Novonor and the banks have been trying for years to sell the construction company's stake in the chemical producer. State-controlled oil company Petróleo Brasileiro, or Petrobras, owns 36.1% of Braskem and has a right to first refusal if Novonor agrees to sell its stake to a third party.

The offer is non-binding and must first go through a due diligence process by ADNOC, Braskem said. The companies also must determine any liabilities related to an accident in the Brazilian state of Alagoas or any other liabilities, and ADNOC would have to negotiate a shareholders' agreement with Petrobras, the chemical company said.

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

(END) Dow Jones Newswires

November 09, 2023 08:01 ET (13:01 GMT)

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