Braskem and Polialden are inviting their shareholders to participate in the Extraordinary General Assemblies on May 31st that will deliberate the incorporation proposal of Polialden by Braskem. This proposal is in consistency with the commitment of creating value for all the shareholders. Besides, it allows the company to simplify its structure and to get important gains in synergies, improving even more its competitiveness.

"The initiative is another important step into the process of shares integration of Braskem, and it indicates the end of the company"s creation process from the union of six other companies", says José Carlos Grubisich, president of Braskem.
"The modeling of this incorporation, like in the previous phases, was designed considering all the shareholders" interests and it will guarantee the access, even to those who migrate to Braskem, to all differentiated benefits offered to all the shareholders, like 100% tag along in case of alienation control", he adds.
 
Braskem already has 100% of the voting capital of Polialden and about 63,7% of its total capital. In the incorporation process of Polialden, Braskem is offering a relation of exchange equivalent to 33,62 preferential class A shares of the company for each amount of a thousand Polialden shares, based on an evaluation  report of both companies, issued by PricewaterhouseCoopers Independent Auditing on financial reports of 03/31/2006. This proposal represents a prize of 6,76% on the substitution relation, based on the net assets evaluation, considering market prices, what shows the interest of Braskem in incorporating Polialden.

In order to keep the current capital structure in Braskem, It"ll be necessary to approve the conversion of 2.632.118 preferential class A shares of the company to ordinary shares. Furthermore, it"ll be issued 7.878.825 of preferential class A shares of Braskem, that will have its social capital increased in R$ 105,3 million, amplifying the base of shares circulating in the market - the flee floating of Braskem will be amplified to approximately 53%.
Once it is approved, the Polialden minor shareholders will have until the 1st of July to the recess exercise. In this case, they will receive R$ 0,449 for each Polialden Share.

The amount of synergies resultant from this incorporation was estimated in approximately R$ 80 million in current net value. With these gains, the accumulated value of synergies, related to Braskem creation, will reach around R$ 400 million, surpassing in more than 20% the goal announced at that moment. "This fact confirms the discipline and the capacity of the company to implement its plans and it is also considered an important competency to be used in the next steps of Braskem growth project", concludes Grubisich.