News

Material Fact - Leniency Agreement

BRASKEM S.A.
CNPJ No. 42.150.391/0001-70
NIRE 29.300.006.939
A Publicly-Held Company

 

MATERIAL FACT


Braskem S.A. ("Company"), in compliance with CVM Ruling nº 358/02, informs its shareholders and the market that, on this date, it entered into a Leniency Agreement with the Federal Prosecutors Office ("Leniency Agreement"), the effectiveness of which is subject to ratification by the 5th Chamber of Coordination and Revision of the Federal Prosecutors Office and by the 13th Federal Justice Criminal Court of Curitiba/PR. The Leniency Agreement is the Brazilian part of the global settlement, which the Company previously informed the market is in the advanced stages of negotiation with the competent authorities.  

Under the global settlement, the Company will pay to the competent authorities, in penalties and damages, a total amount of approximately US$ 957 million, equivalent to approximately R$ 3,1 billion.

Out of this amount, approximately R$ 1,6 billion will be paid up front, after the ratification of the agreements by the respective competent courts.  The balance of approximately R$ 1,5 billion will be paid in six annual installments, from January 2018 onwards, adjusted by the IPCA variation. 

The facts under the Leniency Agreement comprise all the facts ascertained up to now that involve Braskem within the context of the Carwash Operation. As a result of the agreements, the Company will continue to cooperate with the competent authorities and implement improvements in its compliance system. The Company will also be subject to external monitorship.

The remaining terms of the Leniency Agreement are confidential, but comply, in general terms, with the standards adopted in other cases by the Federal Prosecutors Office.

The Company will keep the market informed of relevant updates to this matter.

 

São Paulo, December 14, 2016.

 


Pedro van Langendonck Teixeira de Freitas
Finance and Investors' Relations Officer
Braskem S.A.