Slim family discloses 6.5% stake in Braskem
The move
Carlos Slim's family and two of his foundations disclosed in a Nov. 6 SEC filing that they jointly hold about 22.4 million Class A shares of Brazilian petrochemical maker Braskem, held as ADSs, equal to roughly 6.5% of the company's outstanding Class A shares. Control Empresarial de Capitales holds 1.5%, Fundacion Carlos Slim holds 4.0% and Fundacion Telmex holds 1.0%; the three entities spent a combined roughly $17.4 million buying the shares. The filing says the family bought the stake for investment, not to seek control, but that it may contact Braskem's management or board about capitalization, board composition or operations.
Why it matters
A new stake from one of the world's richest investors is a vote of confidence in a company that has struggled with weak petrochemical prices and liabilities tied to a ground-subsidence disaster in Brazil.
The bear case
A 6.5% stake described as "for investment purposes" gives the Slim family no board seat or control, and the filing itself says they may just as easily sell the shares depending on market conditions.
What to watch
Whether the Slim family's stake grows past levels that would require further disclosure.
