Mubadala Development Company (Mubadala), the Abu Dhabi-based strategic investment and development company, and Mr. Eike Batista, the founder of EBX Group ("EBX") of Brazil, today announced the signing of a strategic partnership agreement. Under the terms of the 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 and other offshore holding companies of Mr. 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% 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. The 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. In addition, the partnership creates a platform and framework for further collaboration between the two organizations in areas of mutual interest.

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 and we are proud to announce this partnership with Eike and EBX, one of Brazil’s and the world’s leading and most dynamic groups. 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. We are confident that this partnership will pave the way for future collaboration."

Mr. Batista, founder and controlling shareholder of EBX, said: "We are delighted to welcome Mubadala to Brazil through this landmark transaction, Mubadala’s first significant direct investment into Brazil. This is the first time we have invited a strategic partner to invest at our holding company level. The investment considerably strengthens the entire group and its ability to successfully implement current and future projects. 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."

LEGAL NOTICE: The strategic partnership constitutes a minority investment by Mubadala in Centennial Asset Brazilian Equity Fund with no changes to the control, management or day-to-day activities of Mr. Eike Batista’s publicly listed vehicles: OGX, OSX, MMX, LLX and MPX.

 

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