Eike Batista, Brazil’s richest person, offered to pay as much as 618.7 million reais ($305 million) to delist his port-operating unit LLX Logistica SA after the stock fell to a three-year low last month.
Batista will offer as much as 3.13 reais cash per outstanding common share, LLX said in a Brazilian regulatory filing today. The offer is 9.8 percent more than LLX’s July 27 closing price and values the company building the Acu port in Rio de Janeiro state at 2.17 billion reais.
The Ontario Teachers’ Pension Plan, LLX’s largest shareholder after Batista, has agreed to boost its stake in the company through the offer, LLX said. Banco BTG Pactual SA, Bank of America Corp. and Banco Santander SA were hired to assess the value of the shares, it said.
Batista, 55, has seen his wealth dwindle this year after investors were disappointed by production and reserve estimates at oil producer OGX Petroleo & Gas Participacoes SA, his biggest holding. Batista is worth $21.3 billion, making him the world’s 22th richest person, according to the Bloomberg Billionaires Index daily ranking. The billionaire peaked at $34.5 billion on March 27, it said.
Batista’s offer trails JPMorgan Chase & Co.’s target price for the company of 5.4 reais per share, the bank’s Sao Paulo-based analysts Fernando Abdalla and Ricardo Rezende said in a note to customers today.
“We would not be surprised if minorities question the suggested price,” the analysts said.
LLX rose 3.9 percent to close at 2.96 reais in Sao Paulo, the highest level since May 14. The stock, which on June 28 dropped to the lowest since May 2009, tumbled 32 percent in the past 12 months.
Batista, who controls six publicly traded companies, owns 374.1 million shares of LLX, or about 53.6 percent of the total stock, with Ontario Teachers’ holding a 17.9 percent stake, Bloomberg data shows.
LLX last week posted its biggest two-day gain since 2009 as investors speculated that Batista may delist the company after shares plunged in the past year. LLX said in a July 24 regulatory filing that it didn’t have any proposals for new “corporate arrangements.”
LLX’s press office in Rio declined to elaborate on today’s filing. Deborah Allan, a spokeswoman for Ontario Teachers’ in Toronto, also declined to comment.