(Recasts to tie in Batista asset transfer news from Monday,
deal details, group history, share prices)
By Jeb Blount
RIO DE JANEIRO Aug 5 Brazilian tycoon Eike
Batista moved on Tuesday to settle his debts with Mubadala
Development Co PJSC, the Abu Dhabi government
investment fund, by agreeing to transfer his stock in a port
operator, the second such accord in two days.
Batista owes Mubadala about $2 billion, the result of a deal
in which Mubadala bought 5.63 percent in a Batista holding
company, a transaction that was ultimately structured as a loan.
The Mubadala deal came in March 2012, just before Batista's
industrial conglomerate, EBX Group, collapsed along with
Brazil's decade-long commodities boom. Under terms of the deal,
Batista was required to give Mubadala part of his holdings if
the investment didn't return at least 5 percent a year.
Under the accord announced Tuesday, Batista and the
companies he controls would transfer to Mubadala a 10.44 percent
stake in Prumo Logistica SA, Prumo said in a
statement. Prumo owns the Port of Acu, north of Rio de Janeiro.
The transfer would cut Batista's stake in Prumo to 10.5
percent from 21 percent, according to data from the Sao Paulo
stock exchange as of July 15.
On Monday, Batista's MMX Mineracao e Metalicos SA
said he agreed to transfer 10.5 percent of the iron ore miner to
Both transactions were expected to be finalized by the end
The deals with Mubadala were the latest efforts by Batista
to restructure his EBX Group and pay personal debts to
EBX, an industrial empire with stakes in mining, oil and
gas, electricity, shipbuilding and port companies was once worth
more than $60 billion. His personal stake in the group was
estimated at more than $30 billion.
The value of the companies has shrank by more than 90
The end of Brazil's commodities boom and the failure of
Batista's oil company to deliver on promised production targets,
led the entire group to implode. The oil company, now known as
Oleo e Gas Participacoes SA, and shipbuilder OSX
Brasil SA both went bankrupt.
Batista was forced to sell most of the rest of his stakes to
new partners at fire-sale prices. Prumo, formerly known as LLX
Logistica SA, is now controlled by U.S.-based investment fund
EIG Global Energy Partners.
The transfer of the MMX shares will cut his stake to below
50 percent and leave EBX with no major traded companies under
Batista's control. Batista retains important stakes in most of
the companies he created. When the deal goes through, he will
still be the largest shareholder in MMX.
(Reporting by Guillermo Parra-Bernal; Editing by Jeffrey