OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of July, 2007
(Commission File No. 1-14862 )
Camacari, Bahia - CEP 42810-000 Brazil
Form 20-F ___X___ Form 40-F ______
in paper as permitted by Regulation S-T Rule 101(b)(1). _____
in paper as permitted by Regulation S-T Rule 101(b)(7). _____
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ______ No ___X___
BNDESPAR OPTS TO EXCHANGE ODEBRECHT DEBENTURES FOR BRASKEM PNA SHARES
São Paulo, July 31, 2007 - BRASKEM S.A. (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK), the leader in the thermoplastic resins segment in Latin America and second largest Brazilian industrial company owned by the private sector, announces the exercise by BNDESPAR of its option to exchange the non-convertible debentures of the second series issued by Odebrecht for Braskem class “A” preferred shares.
The debentures were issued by Odebrecht S.A., with maturity on July 31, 2007, in two series that were fully subscribed by BNDESPAR. Pursuant to the issue indenture, BNDESPAR has the option to exchange, by the maturity date, the second series of the debentures for Braskem class “A” preferred shares held by Odebrecht.
As a result of this exchange and the conversion by Odebrecht of the debentures issued by Braskem, as announced to the market on June 19, 2007, the interest of BNDESPAR in the capital stock of Braskem will increase from 3.7% to 7.4% and interest held by Odebrecht in Braskem will increase from 38.1% to 44.4% .
The exchange by BNDESPAR does not result in any additional issue of shares, and therefore does not alter the number of shares to be issued by Braskem as a result of the decision by Odebrecht to convert its debentures. The number of shares in Braskem to be issued is 77.5 million, comprising 25.8 million common shares and 51.7 million class “A” preferred shares, bringing the new total number of shares to 449.4 million, comprising 149.8 million common shares, 298.8 million class “A” preferred shares and 0.8 million class “B” preferred shares.
The free float of Braskem shares on July 31, 2007 will decline from 49% to 44.9% .
According to Braskem CEO José Carlos Grubisich, “This decision demonstrates the confidence of Odebrecht and the Brazilian Development Bank (BNDES) in Brazil’s petrochemical industry and particularly in Braskem’s potential for value creation.”
| Braskem, a world-class Brazilian petrochemical company, is the leader in the thermoplastic resins segment in Latin America, and is the second largest Brazilian industrial company owned by the private sector. The company operates 18 manufacturing plants located throughout Brazil, and has an annual production capacity of more than 10 million tons of petrochemical and chemical products. |
| For further information, please access our IR website at www.braskem.com.br/ir or contact our Investor Relations Team: | ||||
| Luciana Ferreira | Luiz Henrique Valverde | Silvio Nonaka | ||
| IR Manager | IRO | IR Manager | ||
| Phone: (55 11) 3443 9178 | Phone: (55 11) 3443 9744 | Phone: (55 11) 3443 9471 | ||
| luciana.ferreira@braskem.com.br | luiz.valverde@braskem.com.br | silvio.nonaka@braskem.com.br | ||
Forward-Looking Statement Disclaimer for U.S. Securities Law Purposes
This press release contains statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are only predictions and are not guarantees of future performance. Investors are cautioned that any such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environments of Braskem and its subsidiaries that may cause the actual results of the companies to be materially different from any future results expressed or implied in such forward-looking statements.
Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the risks and uncertainties set forth from time to time in Braskem reports filed with the United States Securities and Exchange Commission. Although Braskem believes that the expectations and assumptions reflected in the forward-looking statements are reasonable based on information currently available to Braskem management, Braskem cannot guarantee future results or events. Braskem expressly disclaims a duty to update any of the forward-looking statements.
| For further information, please access our IR website at www.braskem.com.br/ir or contact our Investor Relations Team: | ||||
| Luciana Ferreira | Luiz Henrique Valverde | Silvio Nonaka | ||
| IR Manager | IRO | IR Manager | ||
| Phone: (55 11) 3443 9178 | Phone: (55 11) 3443 9744 | Phone: (55 11) 3443 9471 | ||
| luciana.ferreira@braskem.com.br | luiz.valverde@braskem.com.br | silvio.nonaka@braskem.com.br | ||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: July 31, 2007
| BRASKEM S.A. | |||
| By: | /s/ Carlos José Fadigas de Souza Filho | ||
| Name: | Carlos José Fadigas de Souza Filho | ||
| Title: | Chief Financial Officer | ||
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will a ctually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.