Abu Dhabi invests $2 billion with Brazil's Batista
RIO DE JANEIRO - Abu Dhabi's state investment fund Mubadala Development on Monday announced a $2 billion investment in Brazilian billionaire Eike Batista's EBX group.
A joint statement issued by the two groups said the investment would give Mudabala a 5.63 percent preferred equity interest in Centennial Asset Brazilian Equity Fund, the personal investment company of Batista, Brazil's richest man who is behind the EBX Group.
The transaction also gives the Abu Dhabi fund an indirect stake in other Batista-controlled companies such as OGX (oil and gas), OSX (offshore naval industry), MMX (mining), LLX (logistics) and MPX (energy).
The statement said Mubadala would also be involved in EBX's future "investment opportunities" in the technology, cement and fertilizer sectors.
In OSX, which posted profits of $3.8 million in 2011 after losses in 2010, the Mubadala investment is aimed at bolstering the group's structure and new business development.
"This well-structured transaction marks our first significant direct investment into one of the fastest growing markets and is an important step in Mubadala's development of strategic opportunities in Brazil and Latin America," said Mubadala chief Khaldoon Khalifa al Mubarak said in a statement.
Batista hailed the investment from the oil-rich Gulf emirate.
"We are very proud of receiving our new partner and this transaction strengthens the relationship not only between the two groups, but also between the two countries," he said.
"The investment considerably strengthens the entire group and its ability to successfully implement current and future projects.
EBX recalled that it planned to invest $15.5 billion between 2011 and 2012 in Brazil and $50 billion over the next 10 years.