Novonor Sells Controlling Stake in Braskem to IG4 Capital Fund
Brazil’s Novonor and NSP Investimentos have agreed to sell petrochemical producer Braskem to Shine I, a private equity fund managed by IG4 Capital, with the transaction expected to close within the next 30 days pending regulatory and legal approvals, according to a report by Reuters cited in Private Equity Wire.
The Agreement Details
The deal involves the sale of common and Class A preferred shares representing roughly 50.1% of Braskem’s voting capital and around 34.3% of total share capital, while NSP will retain a 4% stake. As part of the transaction, Shine I is expected to launch a mandatory tender offer for remaining outstanding shares, both common and preferred. Petrobras, which holds 47% of Braskem’s voting shares and 36.1% of total equity, is reviewing the terms of the deal before deciding on any waiver-related rights.
Governance and Leadership Changes
Over the same period, Shine I and Petrobras are set to finalise a revised shareholders’ agreement that will define Braskem’s future governance structure, balancing control between the two and leading to a new board and executive team after a shareholder meeting on 29 April. Sources indicate that IG4 managing director Helcio Tokeshi is likely to be appointed chief executive, while Carlos Brandao, currently head of operations at IG4, is expected to take on the role of chief financial officer, though IG4 representatives declined to comment on the appointments.
Market Reaction and Braskem’s Context
Braskem shares rose around 3% on Monday in response to the announcement, and the stock has gained approximately 15% year-to-date, supported by investor expectations of Novonor’s exit first signalled in late 2024, according to Private Equity Wire. Braskem continues to face pressure from weak petrochemical margins and liabilities linked to subsidence issues in northeastern Brazil caused by historic salt mining activities, while managing significant near-term debt obligations and evaluating legal options to avoid a formal restructuring process. As a widely-known context, Braskem operates in the global petrochemical industry, where such transactions can influence market dynamics in emerging markets like Brazil.
