Brazil Braskem says LyondellBasell did not approach it about takeover

31 October 2017 15:31 Source:ICIS News

HOUSTON (ICIS)--Braskem said on Tuesday that it was not approached by LyondellBasell about any proposal to acquire its shares.

Braskem made the comments in a regulatory filing with the Securities and Exchange Commission (SEC).

Earlier, the Wall Street Journal reported that LyondellBasell had approached Braskem about a possible takeover. The talks were still preliminary, and there was no guarantee that a deal would go through.

In the SEC filing, Braskem said whether its shares should be sold would be up to its shareholders, the largest of which are Odebrecht and Petrobras.

Combined, these two companies own the majority of Braskem's outstanding shares – Odebrecht at 38.3% and Petrobras at 36.1%. In addition, Petrobras owns 47.0% of Braskem's voting shares, while Odebrecht owns 50.1%, according to an SEC filing.

Odebrecht, in fact, also appointed the majority of the members of Braskem's board of directors, and it has the sole power to approve the business plan of the company, the filing said.

Braskem did not say whether Odebrecht was approached by LyondellBasell. According to the company, Odebrecht is continuing to work on alternatives that would add value to Braskem and to all of its shareholders. Odebrecht also reaffirmed its intention of keeping Braskem as part of the group's investments.

By Al Greenwood