Amsterdam-based Trafigura Beheer and Abu Dhabi's sovereign wealth fund Mubadala Development Co has agreed to acquire a controlling stake in the Brazilian iron-ore port owned by Eike Batista. The Trafigura and Mubadala would control 65% of the stake in the PortCo unit of MMX Mineracao & Metalicos. This would be in exchange for USD 400 million and assuming the company's debt amounting to USD 596 million.
Once the deal is completed, MMX would still a 35% stake in PortCo. It would also be able to designate a board member to the company as part of the shareholders agreement with the two buyers. Moreover, MMX would still have the option to purchase an added 7.5% stake in PortCo.
The agreement would still need to be approved by regulatory authorities. It would also be subject to the restructuring of the company's existing debt. MMX also said that shareholders of MMX would not be able to exercise their preemptive rights on the deal. This is because PortCo is not wholly-owned by MMX.
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