Mubadala Development Co., the Abu Dhabi sovereign wealth fund that restructured a $2 billion investment in Eike Batista’s EBX Group Co., said it may be interested in the billionaire’s assets after the shares slumped.
Mubadala is among a “number of parties” that see significant potential value in a number of assets held by Batista’s holding company EBX, according to an e-mailed statement today from the sovereign wealth fund in reply to questions.
EBX, based in Rio de Janeiro, agreed to redeem a “significant portion” of Mubadala’s initial investment earlier this month and give “enhanced protection” to remaining funds. Batista’s six publicly traded companies have lost about $10 billion in market value this year as oil unit OGX Petroleo & Gas Participacoes SA missed output targets and abandoned fields previously declared commercial.
Mubadala also said in its statement that it remains in talks with EBX as Batista’s holding continues to restructure its business. The government-owned fund agreed to take a 5.63 percent stake in EBX at the peak of the Brazilian group’s market value in March last year.
Batista, once Brazil’s richest person, lost more than $30 billion of his fortune after OGX’s missed targets prompted a selloff of shares in his commodities and logistics units. The billionaire is now divesting assets, restructuring debt and trimming projects. He sold 56.2 million shares of OGX in June after divesting 70.5 million shares in May as he seeks to raise cash to pay back debts.
OGX rose 5.6 percent to 57 centavos in Sao Paulo trading at 11:32 a.m., heading towards its highest close since July 10. The stock is leading gains in Brazil’s benchmark Ibovespa index.