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Wed 20 Jan 2016 10:41 AM

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Abu Dhabi’s Mubadala takes control of Brazil hotel, assets owned by Eike Batista

Formerly the 7th richest man in the world the Brazilian is aiming to clear his debts

Abu Dhabi’s Mubadala takes control of Brazil hotel, assets owned by Eike Batista
Brazilian businessman Eike Batista. (Getty Images)

Abu Dhabi’s Mubadala Development Company, the emirate’s government investment vehicle, has taken control of a number of assets owned by Brazilian businessman Eike Batista, including the Latin American country’s first ever five-star hotel, it was reported.

Batista was lent $2 billion by Mubadala in 2012, when he was worth around $30 billion and was the seventh richest man in the world. As his business empire crumbled and his stock price tumbled, his wealth declined to $200 million and he now estimated to have debts of up to $1 billion.

In a bid to clear the debts he owes Mubadala, Batista has transferred a number of assets to the Abu Dhabi investment vehicle, according to a report by the Wall Street Journal. These include his 100 percent ownership of the historic Hotel Gloria in Rio de Janeiro.

Built in 1922, it was the first five-star hotel in Brazil. Batista bought it in 2008 for around $50 million and was set to restore it to its former glory but the work has remained at a standstill and the hotel currently remains closed.

Mubadala also took control of Batista’s 26.45 percent stake in his coal firm CCX Carvão da Colômbia SA, his 21.04 percent stake in mining firm MMX Mineração e Metálicos SA, his 11.47 percent stake in the oil firm formerly known as OGX and, lastly, his 28.79 percent stake in shipbuilder OSX Brasil SA, the WSJ report claimed.

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