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OSX Surges as Batista Injects Cash Through Put Option: Rio Mover

June 26 (Bloomberg) -- OSX Brasil SA rose the most in a month after billionaire Eike Batista and other shareholders paid almost 30 times the market price to buy stock in the crude shipper as it struggles for cash.

OSX, which plunged 87 percent this year through yesterday, jumped 16 percent to 1.58 reais in Sao Paulo, the steepest gain since May 21. Brazil’s benchmark Ibovespa rose 0.6 percent.

Batista, who gave OSX the right to sell him as much as $1 billion of its stock at 40.14 reais apiece through March 2014, bought 183 million reais ($83 million) along with other subscribing shareholders yesterday, the Rio de Janeiro-based company said after markets closed. Shareholders have another five days to subscribe to the 240 million-real tranche of the put option, after which Batista will buy any remaining stock offered, according to terms of the sale.

OSX, the worst performer among Latin American companies worth at least $100 million this year, is cutting costs and refinancing debt after Batista’s oil producer OGX Petroleo & Gas Participacoes SA, its main client, missed output targets.

The company declined to disclose the amount bought by Batista yesterday or to name the other shareholders that subscribed to the offering in an e-mailed response to questions. OSX had already raised $620 million in other sales related to Batista’s put option.

To contact the reporter on this story: Rodrigo Orihuela in Rio de Janeiro at rorihuela@bloomberg.net

To contact the editor responsible for this story: James Attwood at jattwood3@bloomberg.net

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