Halister News

(Bloomberg) -- A potentially successful renegotiation of Braskem’s shareholders’ agreement with attractive terms could open the door for a potential re-rating of the stock, says Santander in a report signed by Christian Audi and Gustavo Allevato.

• Negotiations could involve a new naphtha supply contract, improvements in corporate governance; that, if combined with other potentially positive factors, could open the door for value to be potentially unlocked: Santander
  • Potential narrowing of the 41% discount to global peers closer to the 10-20% level would imply Braskem’s equity value increasing by approximately 60-90%
• Itau BBA says in a report signed by Ciro Matuo that negotiations mark an important step for Petrobras toward the sale of its minority stake in Braskem
  • New agreement might grant more limited power to a new minority shareholder than is currently granted to Petrobras, which has a negative impact on the price of the shares to be sold
  • Eventual signing of a longer- term naphtha-supply contract between Braskem and Petrobras could benefit both cos.
• NOTE from July 18: Petrobras in talks with Odebrecht for new Braskem shareholder deal

To contact the reporter on this story: Ana Carolina Siedschlag in São Paulo at asiedschlag@bloomberg.net To contact the editors responsible for this story: Daniela Milanese at dmilanese@bloomberg.net Giulia Camillo