SAO PAULO, Brazil, March 31 /PRNewswire-FirstCall/ -- Braskem S.A. (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK), a leader in the thermoplastic resins segment in Latin America and one of the three largest privately-owned Brazilian industrial companies, announced today that its minority shareholder, Petrobras Quimica S.A., or Petroquisa, did not exercise its option to increase its share of Braskem's voting share capital and accordingly, that its option has expired. If Petroquisa had exercised its option, it would have increased its ownership of Braskem's voting share capital from approximately 10% to as much as 30%. The option was not exercised, as it was not possible to reach a consensus regarding the terms and conditions that would allow the creation of value for all of Braskem's shareholders.
Jose Carlos Grubisich, Braskem's CEO, noted that, "Braskem maintains its strong belief that consolidation and integration remain the best approach for the Brazilian petrochemical industry to become more competitive in response to greater challenges as the petrochemical market is increasingly globalized." Braskem's CEO added that, "our company will continue working to improve the competitiveness of the entire production chain for petrochemicals and plastics in Brazil."
Grubisich also noted that Braskem will continue to implement all of its programs for growth and increasing competitiveness, with a focus on additional production capacity, strong technological innovation and access to new sources of competitive raw materials: "Braskem will continue to invest in its growth, which is the best way to demonstrate confidence in the strength of the petrochemical market and the Brazilian economy." He affirmed that "Braskem reiterates its commitment to the development of the State of Rio Grande do Sul and the Triunfo Petrochemical Complex, where its most modern and competitive industrial units are located, including its Center for Technology and Innovation. Braskem will continue to manage Copesul, together with the Ipiranga Group, with the same success achieved thus far."
Braskem's existing corporate structure will not change in any manner, and Petroquisa will maintain its existing ownership interest of 10.02% and 8.45% of Braskem's voting and total share capital, respectively.
Braskem, a world-class Brazilian petrochemical company, is the leader in the thermoplastic resins segment in Latin American, and is among the three largest Brazilian-owned private industrial companies.
© 2006 PR Newswire
