By Carolina Mandl and Tatiana Bautzer

SAO PAULO (Reuters) – Brazilian conglomerate Novonor, its creditor banks and state-controlled oil company Petrobras are expected to take a first step to divest from petrochemical company Braskem SA (NYSE:) in the fourth quarter, three sources with knowledge of the matter said.

Novonor (formerly Odebrecht) is currently discussing multiple share offering options with its creditors. One of the options would be to unload Braskem preferred stock owned by Novonor in the following months. Sources said that Petrobras is a minority shareholder of Braskem and has been invited join any share offering to split the proceeds.

Sources said that the first offer could reach 9 billion reais (roughly $1.65 billion), if Petrobras participates.

Novonor will sell the preferred stake which is approximately 20% of Braskem’s capital. Petrobras and Petrobras will then discuss the most appropriate time to dispose their common stock.

Petrobras and Novonor declined to comment.

It is possible that the company will complete listing its shares on Novo Mercado. The Novo Mercado segment is a Brazilian stock exchange where there are higher standards of corporate governance.

However, creditors and shareholders are keen to get rid of the shares as soon as possible in order to prevent a stock offering that could take place months before Brazil’s contentious presidential elections. Market volatility is likely to result.

Some of Brazil’s largest banks are managing the process. They extended billions in loans to Odebrecht, and they have become frustrated at the time taken to collect funds. Former Odebrecht, who was involved in Brazil’s Car Wash corruption scandal is currently under bankruptcy protection.

Novonor owns 38.3% of Braskem, which is collateral for some of the most significant loans. Creditors have decided to sell Braskem through share offerings because no buyers for the entire company emerged during a formal M&A competitive process managed by Morgan Stanley (NYSE:) at Novonor’s request.

Sources said that other bids were too low for certain parts of Braskem.

The sources said that it was clear that there could not have been a single offer for the entire divestment. While the Braskem sales will be a priority for banks, Petrobras is helping to coordinate the exit strategy. Petrobras owns 36.1%.

Shares of Braskem have soared 150% this year, driven by higher prices for resins and lower debt, while the broader index is down 6%. Market capitalization for the company is 47 billion Brazilian reais. It has been involved in settling disputes in Mexico as well as in Brazil.

($1 = 5.4386 reais)