Shares of Brazilian chemical company, Braskem, have surged by 5.2% following reports that shareholder Petróleo Brasileiro’s management is in favor of an acquisition offer by Apollo Global Management and Abu Dhabi National Oil Co. (ADNOC). This development has sparked investor optimism, driving Braskem’s shares to reach 23.16 reais ($4.77), albeit still down 7.7% from last year’s close.
Positive Reception from Petrobras
Petrobras, which holds a 36% stake in Braskem, has signaled its preference for the bid made by Apollo and ADNOC. One columnist from Brazil’s Globo news organization reported that Petrobras communicated its support to Brazilian President Luiz Inácio Lula da Silva. The state-controlled oil company lauds the investment capacity and industry expertise demonstrated by this group.
However, Petrobras issued a statement emphasizing that no final decision has been made regarding the fate of its stake in Braskem. Novonor, previously known as Odebrecht, intends to sell its 38% stake in Braskem, with Petrobras having the first right of refusal to make the purchase.
On the stock market front, Brazil’s benchmark Ibovespa stocks index remained relatively stable during early trading. Petrobras’s preferred shares experienced a modest uptick of 1.1% to reach BRL34.26.