Brazil's Braskem buys remaining shares of Nitrocarbono

2003/01/14

SAO PAULO (CNI)--Brazilian petrochemicals giant Braskem said Tuesday its offer for remaining shares of Nitrocarbono has been accepted by regulators and that the buyout will begin tomorrow and end 13 February.

Virtually all of Nitrocarbono - 95.5% of its shares - was incorporated into Braskem on 16 August last year when Nitrocarbono's parent, the Mariana consortium, joined with Copene, the Odebrecht group, Norquisa and Petroquisa to form Braskem. The remaining 4.5% of Nitrocarbono is publicly traded.

To secure those outstanding shares, Braskem will offer 258 of its ordinary shares and 456 preferential shares for each lot of 1000 shares of Nitrocarbono.

Credit Lyonnais Brasil did the valuation of the firm and Citibank is managing the purchase offer.

This is the first of three tender offers that Braskem is expected to complete this year in the final stage of merging the firm's holdings. Trikem and Polialden are the other two firms Braskem hopes to fully integrate this year through stock swaps or buy-backs.

Nitrocarbono is headquartered in Camacari, in the northeastern state of Bahia. It is Brazil's only caprolactam producer, with capacity of 56 500 tonne/year.

Headquartered in Sao Paulo, Braskem controls 35% of the overall petrochemicals market in Brazil, including 39% of the polypropylene (PP) market, 31% of the polyethylene (PE) market and 51% of the polyvinyl chloride (PVC) market.