Once a symbol of Brazil’s might, billionaire sells controlling stake in a Company

Dan Horch – The New York Times, 08/13/2013

The troubled Brazilian businessman Eike Batista has taken further steps toward dismantling his once high-flying empire of energy, logistics and mining companies.

Mr. Batista announced Wednesday night in a filing with the Brazilian securities and exchange commission that he would sell a controlling stake in one of his companies, the LLX logistics firm, for 1.3 billion reais ($560 million). The buyer is EIG Global Energy Partners, an energy investment firm based in Washington that has invested in projects all over the world. Mr. Batista will also give up his management role in the company.

People briefed on the matter confirmed on Wednesday that another of his companies, the petroleum firm OGX, has hired the Blackstone Group as a financial adviser.

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Eike Batista is slowly becoming the poster boy for everything that’s wrong with Brazil

Linette Lopez – Business Insider, 08/05/2013

It isn’t often that a former central bank president feels the need to reassure a country that it’s economic problems are not the fault of one single man.

This weekend, however, former Brazilian central bank president Arminio Fraga told the press that erstwhile billionaire tycoon Eike Batista’s losses were not the reason for the country’s stock market malaise.

Batista himself, over a year ago the 7th richest man in the world, has lost billions from his commodities and logistics empire — EBX — and is now estimated to be worth only around $200 million, including debt
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Eike Batista: Brazil’s biggest loser

Kenneth Rapoza – Forbes, 07/30/2013

It would be better if he were trying to lose weight.  But Brazilian billionaire Eike Batista doesn’t need to lose weight.  He’s looking pretty good at 56. At least on the outside. On the inside, the man must be a ball of stress as his family of companies in the EBX Group — from oil firms to shipbuilders — have lost more money than any other company listed on the Brazilian stock exchange.

For that, Eike Batista is Brazil’s biggest loser.

It’s a line that’s been repeated here quite a few times at Forbes.  And over at Bloomberg, too, where reporters have estimated his net worth is now down to just $200 million.

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Ecological risks may spell trouble for Batista’s Brazil port

Jeb Blount – Reuters, 07/11/2013

As Brazilian billionaire Eike Batista breaks up his crumbling EBX Group industrial empire to pay off debt, one of the few assets he’s expected to keep is port-development company LLX Logística SA.

But raising the more than $600 million needed to finish LLX’s only project, the massive $2 billion Port of Açu north of Rio de Janeiro, may be a struggle. One-and-a-half times the size of Manhattan, Açu is designed to ease delays caused by Brazil’s overcrowded ports and serve a booming offshore oil industry. It’s also being dogged by scientists’ claims that its construction is polluting the surrounding lowlands ecosystem with salt.

Raising money for anything associated with Batista, a serial entrepreneur who once boasted he would become the world’s richest man, won’t be easy. Since 2010, he has presided over the loss of $50 billion of shareholder value in EBX Group stock. EBX controls LLX and five other traded companies, all branded by Batista with an “X” to signify “the multiplication of wealth.”

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Brazil’s EBX shakes up management

Diana Kinch – WSJ, 03/06/2012

A rash of new appointments within EBX, the holding company of billionaire Eike Batista with interests in iron ore, logistics, oil and coal, is raising questions among investors and hitting share prices within the group.

MMX Mineracao e Metalicos SA, Batista’s iron-ore concern, and LLX Logistica SA, his logistics company, both appointed new chief financial officers this week.

Both companies have projects at the sensitive ramp-up stage, which requires management stability, analysts said. MMX is currently tripling its iron-ore production capacity in Brazil and building a major iron-ore export port to serve various companies, while LLX is building what Mr. Batista said will be Latin America’s biggest port at Acu, in Rio de Janeiro state.

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