Mubadala to Invest $2 Billion in Eike Batista’s EBX Group as Part of Strategic Partnership
The Mubadala Development Company and Mr. Eike Batista, the founder of EBX Group of Brazil, today announced the signing of a strategic partnership agreement. Mubadala will make a US$2 billion primary investment in exchange for a 5.63% preferred equity interest in Centennial Asset Brazilian Equity Fund LLC (CABEF) and other offshore holding companies of Mr. Batista. The CABEF is the investment vehicle of the EBX group, Mr. Batista’s overall holding company. Mubadala’s investment is structured as a preferred equity security that gives it, in addition to certain rights and protections consistent with a minority investment of this size, a 5.63% economic interest in EBX including an indirect interest in both its publicly listed holdings, OGX, OSX, MMX, LLX, MPX and core privately-held assets such as AUX, REX and IMX.
Mubadala has a history of partnering with companies, including General Electric. This is Mubadala’s most significant direct investment in Brazil. This is the first time Mr. Batista invited a strategic partner to invest at the holding company level.
The strategic agreement also gives Mubadala participation in both EBX and Mr. Batista’s pipeline of future investment opportunities, such as technology companies, cement, fertilizers, entertainment and others.