Braskem Sale: Understand The Changes Expected After Employee’s Death

On June 22, a tragic incident occurred at the Braskem plant, located in Santo André, São Paulo. An employee of Tenenge, an industrial engineering company providing services to the petrochemical, lost his life after the explosion of a gasoline tank.

This episode had a significant impact on the already billion-dollar sale process of Braskem, raising questions about possible conflicts of interest and the company’s valuation.

We know that Tenenge is controlled by the same group that manages Braskem, the Odebrecht family. While Braskem is undergoing judicial recovery, Tenenge is not facing the same financial difficulties. As a result, businessmen and bankers interested in buying Braskem are concerned about the possibility of a conflict of interest between the two companies, which could negatively impact the petrochemical’s sale value.

One question that arises is why a financially healthy company would provide services to another within the same group that is in judicial recovery. It is natural for those interested in purchasing Braskem to request information about the company’s contracts with Tenenge, in order to assess the value and quality of the services provided.

Hiring a construction company (Tenenge), which is part of the same controlling group, to carry out the services seems to raise suspicions that Braskem may be acting outside the company’s compliance standards.

When companies from the same group act as suppliers to each other, we call this relationship “related parties.” Minority shareholders may argue that Novonor, the group of the Odebrecht family, is abusing its controlling power.

These issues will be debated at the next meeting of Braskem’s creditor banks, scheduled for Friday, June 30, 2023. During the meeting, there will be inquiries about the selection criteria and prices involved in hiring Tenenge by Braskem.

The death of the Tenenge employee during the explosion at Braskem was a tragic event. The company issued a statement mourning the loss and informing that five people were affected in the accident. Unfortunately, despite the efforts of the medical team, one of the employees passed away. The other four were taken to hospitals in the region, with two hospitalized and the other two sustaining minor injuries. Tenenge is focused on providing support to the victims, their families, and collaborating with the authorities at the scene.

In response to the raised concerns, Tenenge sent a statement to Poder360, clarifying that its relationship with Braskem is not related to the judicial recovery process of the Novonor Group.

The company emphasized its experience and expertise in the engineering, construction, and industrial assembly sector, highlighting participation in important petrochemical projects in the country. Tenenge claimed that its hiring by Braskem follows all bidding, selection, and hiring processes established by a publicly traded company.

The company stressed its robust governance, with independent members on its Board of Directors, compliance certifications, both in Brazil and abroad, and the recent receipt of the Infra+ Integrity seal, granted by the Ministry of Infrastructure.

It is important to note that Braskem is one of the largest petrochemicals in the world, with a global presence, including plants in several countries. The company constantly seeks specialized industrial engineering services, hiring a variety of suppliers in this segment. Tenenge is just one of those companies, currently holding two small contracts in Brazil, one for electromechanical assembly and another for maintenance services.

Given all this information, it is crucial for the market to closely monitor the developments of this tragic episode and the possible influence it will have on Braskem’s sale process. Transparency and adherence to governance standards by the involved companies are essential to ensure investor confidence and achieve a fair and favorable sale for all stakeholders.