Brazilian petrochemical producer Braskem says controlling shareholder Novonor has signed an agreement that could lead to the sale of its stake to private equity firm IG4 Capital, according to a report by Reuters.
Under the proposed structure, IG4 would share control of Braskem with state-run oil group Petrobras, while Novonor would retain a 4% holding.
Petrobras said it is reviewing the terms of the transaction. The oil major has long sought greater influence over Braskem and reportedly expects a new shareholders’ agreement to increase its board representation. New management at Braskem could be in place by March.
The deal would see IG4 acquire around BRL20bn ($3.7bn) of Novonor debt held by Brazilian lenders and secured against Braskem shares, with Novonor transferring its controlling stake to an IG4-backed fund. The agreement includes a 60-day exclusivity period for final negotiations.
