Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Bolsa de Valores de Sao Paulo  >  Braskem S.A.    BRKM5   BRBRKMACNPA4

BRASKEM S.A.

(BRKM5)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

Exclusive: Brazil's Odebrecht in talks to stave off Braskem sale, keep payout - sources

12/02/2019 | 06:48pm EST
FILE PHOTO: The corporate logo of the Odebrecht SA construction conglomerate is pictured at its headquarters in Sao Paulo

Creditors of Brazil's Odebrecht SA are in advanced talks to let the corruption-ensnared conglomerate keep its crown jewel asset, listed petrochemical company Braskem SA, for another two years, retreating from their prior demand for a quick sale, two sources with knowledge of the matter said.

In a further victory for Odebrecht, which is trying to restructure 51 billion reais ($12.2 billion) in debt, its bank creditors will let it keep receiving most of Braskem's dividends - now virtually Odebrecht's sole revenue source - during that period.

The engineering and construction company, implicated in a series of graft scandals across Latin America, will submit its debt proposal to a creditors' meeting on Wednesday, but representatives of creditors whose debt is secured by Braskem shares have informally agreed to it, the sources added, asking for anonymity to disclose private talks.

Still, a final decision depends on approval by the banks' internal loan committees, the sources added.

Odebrecht and the bank creditors did not immediately respond to requests for comments.

Under Odebrecht's proposal, none of its outstanding debt would be repaid during a 24-month period during which the banks would also concede nearly 80% of Braskem's dividends to Odebrecht, the sources said. After that period, banks could potentially agree on extending the standstill period for another 12 months.

For its part, Odebrecht would be required to give up any questioning in Justice of the right of banks to take possession or sell shares in Braskem, the group's crown jewel.

Earlier this year, Odebrecht argued in bankruptcy court the Braskem stake was an essential asset that could not be sold.

Although the plan falls short of banks' expectations, it is a temporary solution to avoid a fire-sale of Braskem. Loans from leading banks such as Banco do Brasil, Itau Unibanco Holding SA, Banco Bradesco SA, Banco Santander Brasil SA and development bank BNDES are secured by Braskem shares.

If the banks sold Odebrecht's stake in Braskem at current market prices, it would barely cover the group's 12.6 billion reais in debt with these creditors. Shares in Braskem are down more than 38% this year.

The petrochemical company may have to pay for relocation of thousands of people in the northeastern Brazilian city of Maceio due to environmental damage caused by its mining activities near the city. It is unclear yet how much it will cost the company.

LyondellBasell Industries broke off talks to acquire Braskem last June.

On Monday, Odebrecht's lawyers were still analyzing a decision by an appeal court in a request by state-owned lender Caixa Economica Federal requiring that creditors vote on the consolidation of debts of more than 20 companies controlled by the conglomerate. It was not clear how it may impact the group's restructuring plan.

By Carolina Mandl and Tatiana Bautzer


© Reuters 2019
Stocks mentioned in the article
ChangeLast1st jan.
AT HOME GROUP INC. 3.31% 25.9 Delayed Quote.67.53%
BRASKEM S.A. -3.30% 24.01 End-of-day quote.1.87%
All news about BRASKEM S.A.
01/25BRASKEM S A : informs the market that it has signed a contract for the purchase ..
AQ
01/21BRASKEM S A : Compact Membrane Systems, Inc. and Braskem Finalize Agreement for ..
AQ
01/21AGILYX : and Braskem Announce Collaboration to Explore Advanced Recycling Projec..
AQ
2020Brazil's Braskem settles lawsuits over sinking city for $1.75 bln
RE
2020PETRÓLEO BRASILEIRO S A PETROBRAS : Brazil's Petrobras seeks $152 mln from Odebr..
RE
2020PETROBRAS : on new contracts with Braskem
AQ
2020AGILYX : and Braskem Announce Collaboration to Explore Advanced Recycling Projec..
AQ
2020AGILYX : AGLX) - Agilyx and Braskem Announce Collaboration to Explore Advanced R..
AQ
2020SECTOR UPDATE : Energy Stocks Sink Despite Late Reversal for Crude Oil
MT
2020SECTOR UPDATE : Energy Stocks, Crude Oil Sinking After OPEC Pares Demand Forecas..
MT
More news
Financials
Sales 2020 55 623 M 10 389 M 10 389 M
Net income 2020 -5 588 M -1 044 M -1 044 M
Net Debt 2020 40 686 M 7 599 M 7 599 M
P/E ratio 2020 -3,29x
Yield 2020 0,45%
Capitalization 19 388 M 3 618 M 3 621 M
EV / Sales 2020 1,08x
EV / Sales 2021 0,94x
Nbr of Employees 4 700
Free-Float 25,4%
Chart BRASKEM S.A.
Duration : Period :
Braskem S.A. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends BRASKEM S.A.
Short TermMid-TermLong Term
TrendsBullishNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 10
Average target price 27,46 BRL
Last Close Price 23,65 BRL
Spread / Highest target 39,5%
Spread / Average Target 16,1%
Spread / Lowest Target -4,86%
EPS Revisions
Managers and Directors
NameTitle
Roberto Lopes Pontes Simões President & Chief Executive Officer
José Mauro Mettrau da Cunha Chairman
Pedro van Langendonck de Freitas CFO & Investor Relations Officer
João Cox Neto Vice Chairman
Gesner José de Oliveira Filho Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
BRASKEM S.A.1.87%3 618
SAUDI BASIC INDUSTRIES CORPORATION0.99%81 256
AIR LIQUIDE0.52%77 492
WANHUA CHEMICAL GROUP CO., LTD.27.98%56 830
HENGLI PETROCHEMICAL CO.,LTD.51.95%44 974
RONGSHENG PETROCHEMICAL CO., LTD.33.39%38 002