Abu Dhabi: Abu Dhabi’s sovereign wealth fund Mubadala Development Company is in talks to buy some of the assets of former Brazilian billionaire Eike Batista for about $1 billion (Dh3.67 billion), Bloomberg has said in a report citing two people with direct knowledge of the matter.
The report said the negotiations are for stakes in oil producer OGX Petroleo & Gas Participacoes SA, MMX Mineracao & Metalicos SA and LLX Logistica SA’s Acu port in Rio de Janeiro state. Batista’s AUX gold business in Colombia is already being used as collateral for $1.5 billion he owes Mubadala after the fund converted a preferred equity investment in the former billionaire’s holding company, EBX Group Co, into debt, last month.
When asked to comment on the report, a Mubadala spokesperson told Gulf News: “The agreement we signed in July with EBX gives Mubadala improved protection for the remaining portion of its investment against certain assets. Mubadala remains in close discussions with EBX and a number of interested parties, as EBX continues to restructure its businesses. We believe many EBX assets have significant potential value for Mubadala and other investors.”
In March 2012, Mubadala announced the signing of a strategic partnership agreement with Eike Batista, the founder of Brazil’s EBX Group. Under the terms of the agreement Mubadala made a $2 billion primary investment in exchange for a 5.63 per cent preferred equity interest in Centennial Asset Brazilian Equity Fund LLC and other offshore holding companies of Batista.
