What is the core mechanism of IG4's acquisition of Novonor's Braskem stake, and how does it avoid cash payment?

The core mechanism is a debt-for-equity exchange: IG4-advised FIP acquires 226.3 million common shares and 47.3 million preferred class A shares from Novonor’s NSP Investimentos — representing 50.1% of Braskem’s voting capital — in exchange for delivering 547.3 million debentures from NSP’s first bond series and 273.6 million from its second series; specifically, for each share acquired, the buyer delivers two first-series and one second-series debenture, with no cash payment involved.

What are the key conditions that must be met for the deal to close, and what happens if the CVM rejects the mandatory tender offer registration?

The transaction remains subject to judicial authorizations and pending approval from the European Commission under its Foreign Subsidies Regulation; antitrust clearances from Brazil, Mexico, the US, and the EU have already been obtained. Crucially, the buyer must file a mandatory tender offer (OPA) with Brazil’s securities regulator CVM to acquire up to all outstanding common and preferred shares on the same terms, and a definitive CVM rejection of that registration request would unwind the deal entirely.

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IG4 Seals Debt-for-Equity Deal for Novonor’s Braskem Stake, Pledges Financial Restructuring