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In a recent disclosure to the market, Braskem S.A. (NYSE:BAK), a global leader in the production of thermoplastic resins, has provided an update regarding the ongoing discussions about the sale of its controlling stake. The company, which currently has a market capitalization of $1.5 billion and trades near its 52-week low, has seen its stock decline by over 65% in the past year. The information, derived from a Form 6-K filed with the U.S. Securities and Exchange Commission, addresses market speculation and outlines the current status of negotiations.
The company, responding to media reports about its potential sale, sought clarification from its major shareholders, Novonor and Petrobras. According to InvestingPro data, Braskem operates with a significant debt burden, with total debt reaching nearly $12 billion and a concerning debt-to-capital ratio of 0.89. Novonor, which is engaged in talks with interested parties for its indirect stake in Braskem, has confirmed that there have been no substantial or binding developments. The company has committed to immediately communicate any significant progress to Braskem to ensure proper disclosure measures are taken.
Petrobras, on the other hand, has completed due diligence on Braskem as part of its assessment for a possible exercise of tag along or preemptive rights in the event of Novonor’s share sale. However, Petrobras has not made any decisions regarding its stake and continues to consider various alternatives.
Braskem has emphasized that it is not directly involved in the negotiations for the sale of its shares and will maintain its supportive role to shareholders as required. The company’s financial health score on InvestingPro is currently rated as "Weak," with analysts not anticipating profitability this year. The company reassures that it will keep the market informed about any relevant updates in accordance with applicable regulations. For deeper insights into Braskem’s financial position and 12 additional exclusive ProTips, investors can access the comprehensive Pro Research Report available on InvestingPro.
The notice also includes a reminder that forward-looking statements within the report are based on management’s current views and estimates and are subject to risks and uncertainties. With the company’s gross profit margin at just 7.75% and negative free cash flow of $214 million in the last twelve months, these may cause actual results to differ from those anticipated.
Investors and stakeholders are advised that this information is based on a press release statement and should be considered in their decision-making process. Braskem’s shares are traded on the B3 under the tickers BRKM3, BRKM5, and BRKM6, as well as on the NYSE and LATIBEX under the ticker BAK.
In other recent news, Braskem SA announced a significant investment plan of approximately $614 million aimed at boosting its production capacity in Brazil. This initiative includes seven projects expected to increase output by about 139,000 tons and create over 2,200 jobs during the construction phase. In another development, Braskem is set to increase its safety provision by around $250 million following consultations on geological events in Alagoas, focusing on backfilling salt cavities to ensure public safety. Additionally, Braskem has entered a 30-year partnership with Aegea Saneamento to supply reused water to its industrial unit in Duque de Caxias, Rio de Janeiro, enhancing water security and sustainability.
The company has also decided to halt new investments in its digital venture, Oxygea, as part of a strategic reassessment to optimize capital allocation and cash generation. Despite this, Braskem maintains that innovation remains a core strategic pillar. These recent developments reflect Braskem’s ongoing efforts to prioritize safety, sustainability, and strategic growth. Analysts and investors are advised to consider these updates when evaluating Braskem’s financial outlook and strategic direction.
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