Mubadala to invest $2bn in EBX

Mubadala Development Company (Mubadala), the Abu Dhabi-based strategic investment and development company, and Eike Batista - founder of EBX Group of Brazil, on Monday entered intio a strategic partnetship.

Under the agreement Mubadala will make a $2 billion primary investment in exchange for a 5.63 per cent preferred equity interest in Centennial Asset Brazilian Equity Fund and other offshore holding companies of Batista.

The proceeds of Mubadala's investment will be used to reinforce the group's already strong capital structure so as to help fund new enterprises across multiple business areas including recently announced partnerships by EBX.

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 per cent 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. 

Khaldoon Khalifa Al Mubarak, Mubadala CEO and Managing Director, said: "Partnering with world-class companies is a key element of our investment and development strategy. 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."

"Mubadala, after conducting thorough due diligence of our companies recognizes the great potential of our Latin American assets. We are very proud to welcome our new partner and believe that this transaction strengthens the relationship not only between our two groups, but also our two countries," he added.