Rio de Janeiro: Mubadala Development Company today confirmed that it has finalized the restructuring of its 2012 $2bn preferred equity investment in the EBX Group, and opened an office in Rio de Janeiro to manage its investment portfolio in Brazil.
Mubadala initiated the restructuring process in early 2013 when the EBX Group was unable to meet certain obligations under the terms of Mubadala’s 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. As of December 31, 2015, the aggregate value of the EBX assets Mubadala has received through the restructuring process exceeds the amount of the original investment.
Carlos Obeid, chief financial officer of Mubadala, commented: ‘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.”
In addition to $300 million in cash, assets that have been transferred to Mubadala as a result of the series of restructuring transactions include:
Obeid further commented: “Our objective is to maximize the value of the assets we have acquired through the restructuring process. We have relocated some of our top asset management teams to Brazil, and hired local talent to actively manage and grow this portfolio of assets.”