EM LATAM CREDIT: Petrobras CEO Braskem Views
(BRASKM; Ba3/BBneg/BB+)
""Braskem's management is not what we want", Chambriard said" - Reuters
Petrobras CEO Chambriard lamented that the company has a 47% voting stake in Braskem and yet has no management control. Petrobras has appointed only four of its 11 board members and only one director out of seven which it deems insufficient.
The company is seeking changes to the shareholders agreement that would give it more influence over decision making, according to Reuters.
Chambriard was pleased with billionaire businessman Nelson Tanure's bid for the company as it would fit nicely into her vision for a restructuring. Petrobras does not want control over Braskem and does not plan to renationalize the company, according to the Reuters interview conducted with Chambriard yesterday.
We think a management shakeup is coming at some point as performance has disappointed for many years and the market could react positively.
The banks holding Braskem stock as collateral for defaulted Odebrecht loans probably don't want to sell at the currently depressed stock price that Tanure has highlighted and might prefer to restructure the company to boost the stock price and then sell. They seem to have vocal and outspoken support from Chambriard if it can be engineered.
Please see our negative take on 1Q 2025 earnings posted last month for more information: https://mni.marketnews.com/4kxCk2I
BRASKM 2034 notes were last quoted T+611bps, 83 bps wider since the May 12 earnings release, 167bps wider QTD and 201bps wider YTD.
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