Trafigura, Mubadala win control of port in US$996m deal

[SAO PAULO] Brazilian businessman Eike Batista ceded control of an iron ore port to Dutch energy firm Trafigura Beheer BV and an Abu Dhabi sovereign wealth fund in a US$996 million deal that takes debt off his hands and secures new investment for the port.

The former billionaire's latest effort to stave off the collapse of his once high-flying Grupo EBX conglomerate follows the sale of other key assets and comes amid talks with creditors of OGX Petróleo e Gas Participações SA. The oil producer missed a US$44.5 million bond interest payment this month and, analysts say, risks going bankrupt within weeks.

Under the terms of the deal, Trafigura and investment fund Mubadala Development Co, Mr Batista's largest single creditor, will get a 65 per cent stake in MMX Porto Sudeste Ltda, a port under construction that is slated to start operating by mid-2014.