Eike Batista, the Brazilian tycoon who sold a $2 billion interest in his commodities empire to Abu Dhabi’s Mubadala Development Co., pledged an additional stake that shields the fund from the selloff in his publicly traded companies, according to a person familiar with the transaction.
Billionaire Batista, under terms of the sale of 5.63 percent of his EBX Group Co. in March, agreed to turn over an unspecified stake in 2019 if he fails to deliver a 5 percent annual return on the sovereign-wealth fund’s investment, the person said, asking not to be identified because the details are private. The person declined to say how the target is measured.
The deal, which Batista, 56, championed as a sign of investor confidence in his interlinking natural-resource and logistics startups, helps preserve Mubadala’s investment if EBX fails to grow or loses value. It also puts Batista’s holdings at risk after his publicly traded companies lost about half their value this year following delays and missed output goals.
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