Batista Gains $7.7 Billion to Advance in Wealth Ranking
Eike Batista’s net worth soared $7.7 billion after he sold a 5.63 stake in his EBX Group Co. holding company to Abu Dhabi’s Mubadala Development Co.
The Brazilian billionaire’s fortune rose 29 percent to $34.5 billion since the beginning of trading on March 26, when he announced the deal. That ranks him above American brothers Charles and David Koch and makes him the eighth richest man on Earth, according to the Bloomberg Billionaires Index, a daily measure of the world’s richest people.
“Imagine me getting my engine and adding another turbo charger,” Batista said in an interview March 26 describing why he sold a piece of his commodities empire.
Batista said in the interview that he may sell another $1 billion stake in EBX to raise more cash in an effort to surpass Mexican Carlos Slim as the world’s richest man. Slim is worth $70.6 billion, more than double Batista, according to the index.
Mubadala will pay Batista $2 billion for the stake in EBX, valuing the holding company at $35.5 billion. Under the terms of the deal, the sovereign-wealth fund will receive 5.63 percent of each of Batista’s stakes in his publicly traded companies, he said in the interview.
The fund will also own the same stake in Batista’s closely held businesses, such as gold miner AUX and real-estate developer REX, as well as a piece of any of EBX’s new ventures, he said.
Batista is raising money to start businesses in industries ranging from fertilizers to precious metals while making investments in his existing commodity companies, including oil producer OGX Petroleo & Gas Participacoes SA and shipbuilder OSX Brasil SA. (OSXB3) The $2 billion will go into EBX’s coffers when the transaction is completed April 20.
Batista kept some assets for himself. Mubadala will not share ownership in 660 million titles linked to future royalties from MMX’s Sudeste port, which were valued at $1.34 billion at the close of Sao Paulo trading yesterday. He will also maintain an estimated $470 million in liquid investments, vehicles and personal real estate.
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