Goldman Sachs Group Inc. became the second-largest shareholder in Eike Batista’s OSX Brasil SA (OSXB3) as the shipbuilding unit of the former Brazilian billionaire faces a possible restructuring of $500 million in bonds.
Goldman Sachs acquired OSX shares on Sept. 3 to reach a 5.22 percent stake, the Rio de Janeiro-based company said in a regulatory filing today. OSX is the worst-performing stock in Batista’s commodities group this year with a 92 percent slump.
Batista, Brazil’s richest person until November, is selling assets and restructuring his group of publicly traded commodities and logistics startups after a series of missed operational and financial targets eroded investor confidence. Creditors representing about 60 percent of OSX bondholders hired law firm Bingham McCutchen LLP in preparation for the possible restructuring of the company’s 2015 bonds, two people briefed on the arrangements told Bloomberg News on Sept. 9.
Goldman Sachs, the fifth-biggest U.S. bank by assets, declined to comment on the share purchase in an e-mail sent by an external public relations representative in Brazil.
“This is a minority investment that does not involve a change in the composition of corporate control or a change in the management structure of the company,” the firm said in a letter accompanying the OSX filing. “Currently, the shareholder does not target any quantity of the company’s shares.”
OSX fetches 0.06 times book value, making it the cheapest stock among 264 companies trading in Brazil with a market value of at least $100 million, according to data compiled by Bloomberg. The entrepreneur created OSX to supply vessels to sister company OGX Petroleo & Gas Participacoes SA (OGXP3), which is in talks with creditors in a bid to avoid bankruptcy protection.
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