Abu Dhabis Mubadala Development Company has opened an office in Brazil following a three-year restructuring process of its $2bn preferred equity investment in EBX Group.
The process began in 2013 when the EBX Group, the holding company of Brazilian billionaire Eike Batista, was unable to meet certain obligations under the terms of Mubadalas original investment.
Through a series of restructuring transactions completed between 2013 and 2016, Mubadala received a combination of cash payments, equity interests in former EBX Group companies, and other international assets in exchange for retiring the preferred equity investment in EBX, according to
The completion of this complex restructuring has enabled us to gain a portfolio of assets which hold attractive, long-term value in sectors aligned with and complementary to core Mubadala businesses, such as metals and mining, infrastructure and real estate, said Carlos Obeid, chief financial officer of Mubadala.
Local media reported that Mubadala managed to retrieve $300m in cash, as well as a stake in Burger King and Tim Hortons, with value estimated to be worth $700m. It is also understood that the Abu Dhabi fund received a 32.5 per cent equity interest in Porto Sudeste, an export terminal located in Brazils iron-ore producing region and a 14.5 per cent of its royalty bonds.
It is understood that Mubadala had relocated some of its top asset management staff to Brazil, warranting the establishment of an office in Rio de Janeiro.