Shearman & Sterling is representing Mubadala Development Company, the Abu Dhabi-based strategic investment and development company, in its $2 billion investment in EBX Group of Brazil as part of a new strategic partnership.
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 EBX founder Eike 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 instrument 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 its publicly listed holdings and its core privately-held assets, as well as participation in EBX’s and Mr. Batista’s pipeline of future investment opportunities.
Mubadala Development Company is a catalyst for the economic diversification of Abu Dhabi. Established and owned by the Government of Abu Dhabi, the company’s strategy is built on the creation of partnerships and on long-term investments that deliver strong financial returns and tangible social benefits for the Emirate of Abu Dhabi and that contribute to the growth and diversification of its economy. Mubadala brings together and manages a multi-billion dollar portfolio of local, regional and international investments and partners with leading global organizations to operate businesses across a wide range of industry sectors. These include semiconductor technology, aerospace, energy, healthcare, information communications and technology, infrastructure, real estate and hospitality, and services ventures.
EBX Group is made up of five publicly traded companies listed on the BM&FBOVESPA Novo Mercado, the segment with the highest levels of corporate governance: OGX (oil & gas), MPX (energy), LLX (logistics), MMX (iron-ore mining) and OSX (offshore naval industry). The Brazilian business group develops structured projects, focused on state-of-the-art technology and the generation of wealth starting from scratch. EBX mainly invests in infrastructure and natural resources sectors. It also heads up initiatives in the real estate, technology, entertainment and sports sectors.
The Shearman & Sterling team included partner Clare O’Brien (New York-Mergers & Acquisitions), counsel Nathan Sawyer (New York-Mergers & Acquisitions) and associates Benjamin Brod and Tania Mattei (both New York-Mergers & Acquisitions).
