Braskem - Catching BAK Up
The company is showing signs of improvement on multiple fronts, while a binding buyout offer could be on the way
2023 ended with hope for Braskem bulls close to a 52 week low. To catch you up on one of my largest exposures, I’ll provide a timeline.
Last summer: Rumors that Apollo Global and ADNOC would together purchase Brazilian petrochemicals company Braskem. The stock rallied from ~$6/share to over $12/share in just a few months, and subsequently sold off as Apollo withdrew.
November: ADNOC presented a standalone, non-binding offer for ~$15/share.
December: The Maceio mine (which caused the abandonment of a town and Braskem paying out billions) finally collapsed. Politicians call for an investigation of Braskem in the Brazilian Senate (called CPI), to the disdain of the Brazilian government.
February: The Senator which called for the CPI was sidelined, and rumors swirled of a pending binding offer as well as a possible bidding war between other Middle Eastern groups.
So where are we today? Why has the Braskem share price recently been appreciating again? In this post I’ll bring you up to speed and share my views on where things go from here.