Manabi Turns to Private Funds

Manabi, the Brazilian miner which canceled IPO plans this year, has instead turned to private investors for $300m in funding. US-based EIG Global Energy Partners has contributed $150m, with a group of investors including Ontario Teachers Pension Plan taking the remainder, Manabi says. The pre-operational iron ore miner sold 240,000 preferred shares at $1,125 each. An official at the company declines to indicate the size of the equity stake involved. Credit Suisse, Goldman Sachs and Itau have been working with Manabi. The IPO process had never advanced to the point where Manabi indicated the size of the float or how much it planned to raise. The miner was founded last year and is developing the Morro Pilar and Morro Escuro projects in the state of Minas Gerias. OTTP was an initial investor in Manabi prior to Thursday’s investment, along with Korea Investment Corporation and Southeastern Asset Management. Strategic investment from private equity, pension funds, sovereign wealth funds and others should continue to see strong activity from Brazilians cancelling IPOs and still in need of funds, bankers say.