By Brasil Stock Guide – Banks holding Braskem SA (BRKM5) shares as collateral for Novonor’s debt have revived negotiations with private equity firm IG4 Capital after failing to reach an agreement with businessman Nelson Tanure, according to a report by Pipeline. The talks aim to transfer the pledged shares to IG4, which would take a controlling role in the petrochemical giant in coordination with Petrobras, owner of 47% of the company.
Before Tanure’s bid for Braskem emerged, Itaú, Bradesco, Santander, Banco do Brasil and BNDES had already been in discussions with IG4 for a deal that could involve management changes and a governance overhaul. The exclusivity period of Tanure’s negotiations with Novonor expires on September 21, after which creditors and IG4 plan to formalize their proposal.
IG4 specializes in corporate turnarounds and has worked with banks on similar operations, such as in the case of Iguá Saneamento. Creditors hope the firm’s involvement will help improve Braskem’s governance and boost its market value, increasing the recovery of outstanding loans.
Novonor’s debt secured by Braskem shares totals about 18 billion reais ($3.3 billion), nearly three times the company’s market capitalization of roughly 6.86 billion reais. In addition to financial and environmental liability restructuring, creditors may consider moving Braskem to Brazil’s Novo Mercado listing segment. Asset sales are also a possibility, although there are currently no active talks with Unipar, which had expressed interest in US-based assets.
IG4 declined to comment, while Novonor did not respond to requests for comment.
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