Batista Cedes Control of Port Project

Eike Batista has finalized a deal selling control of the MMX Porto Sudeste project to Trafigura and Mubadala, MMX says. The Dutch commodities trader and the Abu Dhabi sovereign wealth fund get a 65% stake in the iron ore port, in exchange for $400m and the assumption of BRL1.3bn ($596m) in debt at the MMX Sudeste Mineracao sister unit. The two buyers have also agreed to provide MMX Sudeste Mineracao with a $100m trade finance facility, and holders of special MMX unit shares would receive a royalty for iron ore shipped after the port makes a profit. MMX keeps 35% and retains an option to buy back a 7.5% stake at closing. MMX Porto Sudeste, loceated in Rio de Janeiro state, is slated to start operating next year. The deal follows Batista’s sale of control of MPX to E.ON in March and of LLX Logistica to EIG in August.