UAE's Mubadala said to eye more Batista assets

  • Share via facebook
  • Tweet this
  • Bookmark and Share
Brazilian billionaire Eike Batista.

Brazilian billionaire Eike Batista.

Abu Dhabi sovereign wealth fund Mubadala Development Company could be interested in investing in more assets owned by Brazilian billionaire Eike Batista.

Earlier this month, Mubadala restructured approximately $2.3bn worth of debt owed by Batista’s EBX Group, reducing the amount the conglomerate owes Abu Dhabi by more than 25 percent.

Mubadala bought a 5.6 percent stake in EBX in March 2012, but shares in the company have lost about $10bn in market value this year on concerns over how sustainable its business model is.

Responding to emailed questions from Bloomberg, a spokesperson for Mubadala said that many of EBX’s assets have significant value to a number of parties, including the wealth fund.

A report by Bloomberg in December said Batista had to pledge additional stakes in his companies that shields Mubadala from the selloff in his publicly traded companies. Shares in ailing oil producer OGX Petróleo e Gás Participações SA are down almost 90 percent this year.

Additional steps to restructure the conglomerate's debt should take several months, a source said, adding that the biggest challenge will be reorganizing ailing oil producer OGX.

Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Finance talk with RAKBANK

Finance talk with RAKBANK

StartUp sat down with RAKBANK’s head of personal banking, Ian...

Tips from the top: Hisham Al Gurg

Tips from the top: Hisham Al Gurg

High profile investor and entrepreneur Hisham Al Gurg discusses...

The hubsters' ecosystem

The hubsters' ecosystem

Tamara Pupic visits Impact Hub Dubai, the first local branch...

Most Discussed