Brazilian tycoon Eike Batista quit as chairman of Brazilian port operator LLX Logmstica on Wednesday, extending the break-up of his once high-flying EBX Group, a mining, shipbuilding, oil, energy and port conglomerate.
Batista, 56, and close adviser, Aziz Ben Ammar, have relinquished their seats on the LLX board, according to a securities filing. Roberto D’Arazjo Senna, who was already in his second term as a board member, will replace Batista as chairman.
The departure comes after EIG Global Energy Partners agreed August 14 to invest 1.3 billion reais (US$4.3 billion) in LLX, providing enough cash to help finish LLX’s Port of Agu north of Rio de Janeiro. Batista will keep his stock in LLX, but the new stock purchased by EIG under the deal will give the Washington, DC-based energy investment fund control of LLX.
After rising as much as 3.66 per cent on the news in early trading in Sao Paulo on Wednesday, LLX stock trimmed gains. By early afternoon, the stock rose 0.61 per cent to 1.65 reais.
New capital from the EIG transaction is likely to drive shares to between 1.70 reais and 2.70 reais, JPMorgan Securities analysts led by Fernando Abdalla said.
That estimate is less than a previous outlook of between 2.80 and 4 reais, because the new EIG stock will dilute the holdings of existing shareholders unless they, too, agree to buy new stock alongside EIG. The capital injection should conclude within 60 days.