Braskem says Solvay price “fair” after regulator blocks tender

Braskem said the price it offered in a tender for the free-float of an Argentine firm was “fair”, and that it was “surprised” by the regulator’s ruling against the acquisition. The Brazilian petrochemical producer agreed in December to buy 70.59% of Solvay Indupa, the Argentine-Brazilian unit of Belgium’s Solvay, directly from the controllers. At the same time, Braskem launched a tender on the Buenos Aires stock exchange for the rest of the plastics maker. Argentina’s stock market regulator, the CNV, ruled against the transaction on Friday. Braskem countered on Monday by saying the price it was offering in the tender — ARS1.35 ($0.20) per share — followed two independent valuations and legal opinions, and was a 153% premium to what Braskem agreed to pay the controlling shareholder. “For these reasons, Braskem believes that the price offered is fair and was surprised by the decision of the CNV to reject the price of its [public tender offer] in light of the new Capital Markets Law of Argentina, and is in talks with CNV to understand the specific objections underlying its decision and to define the next steps,” the firm said in an emailed statement.