This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Mubdala Takes Batista Stake in MMX

NEW YORK (The Deal) -- Abu Dhabi wealth fund Mubdala Development is to strengthen its equity exposure to Eike Batista's restructuring EBX Group by gaining a 10.5% stake in Sao Paulo-listed iron ore producer MMX Mineracao e Metalicos in exchange for debt.

EBX controlling shareholder Batista will give Mubdala almost 17.1 million MMX shares that were worth 24.4 billion reais ($10.7 billion) as of Monday's close. MMX said the share transfer is being made "in the context of the investment restructuring of Mubadala Development Company in EBX Group" and is subject to undisclosed conditions.

MMX said the transfer is expected to close in the third quarter.

"The company will keep its shareholders and the market in general informed of any update regarding the relevant assignment of shares," it added.

The agreement will take the MMX stake held by Batista affiliates down to about 48.8% from 59.3%, as MMX becomes the latest EBX Group company at which the tycoon has ceded control after debt problems emerging last year threatened to engulf the whole empire and forced several subsidiaries to seek bankruptcy protection.

Batista remains chairman of MMX. Last year he lost control of MPX Energia and LLX Logistica. In June the renamed EBX oil producer Oleo e Gas Participacoes gained creditor backing for a court-supervised agreement for a deal that hands most of the equity to a Pacific Investment Management-led creditor group.

The MMX stake transfer agreement comes after Mubdala and Netherlands trading company Trafigura Beheer in February closed a near-$1 billion deal for a 65% stake in the Porto Sudeste iron ore port owned by MMX.

MMX shares closed up 1.4% on Monday, at R$1.43. The share price was around R$12 a year ago.

Mubdala had 223.8 billion dirham ($60.9 billion) under management at the end of last year.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $111.65 0.04%
FB $94.81 0.58%
GOOG $649.90 0.50%
TSLA $220.30 2.20%
YHOO $32.78 -0.24%


Chart of I:DJI
DOW 17,085.59 -46.27 -0.27%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,810.7640 -27.8790 -0.58%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs