Brazilian petrochemical firm Braskem (BRKM5.SA) sent its shares soaring on Monday as it confirmed a bid from Unipar Carbocloro (UNIP6.SA) for a controlling stake in the company with a premium of more than 40% over its previous closing price.
Braskem said that Unipar, a leading producer of chlorine and soda in South America, offered conglomerate Novonor 36.50 reais per share for a 34.37% stake in the firm, a move that could end up settling a long-lasting muddle over the company's ownership.
Novonor, formerly known as Odebrecht, is Braskem's main shareholder alongside state-run oil firm Petrobras (PETR4.SA), but has been long looking to sell its controlling stake as part of broader restructuring.
Proceeds of a potential sale would pay the conglomerate's creditors, mainly large banks, which would still need to greenlight any deal as Novonor's stake in Braskem is pledged as collateral.
Braskem shares jumped as much as 13% after the news, making it the top gainer on Brazil's Bovespa stock index (.BVSP), which was up 0.5%. Shares in Unipar, which is backed by billionaire Luiz Barsi, rose 2.8%.
"Our sentiment on the sale of Braskem to a private player has improved, and we believe Unipar is seeking to align as many interests as possible for a successful operation," analysts at BTG Pactual said in a note to clients.
Unipar's offer represent a premium of 43% over Braskem's closing price on Friday, competing with a previous cash-and-debenture bid from U.S. asset manager Apollo (APO.N) and the Abu Dhabi National Oil Company (ADNOC).
BTG analysts said the Unipar bid was more appealing as it appeared to be entirely in cash, estimating it to be 22% higher than the Apollo/ADNOC offer, but noted it still implied a big debt haircut for creditors.
Newspaper Valor Economico reported Unipar's offer was worth 10 billion reais ($2.05 billion), while BTG estimated that creditors still need to receive around 14-15 billion reais from Novonor.
Under the proposed transaction, Novonor would retain a minority stake of 4% in Braskem. Unipar also said it would still hold talks with Petrobras over its stake.
($1 = 4.8748 reais)
