Citation:
Lietz, Nori Gerardo, and Arthur Sobral. "Colony Capital: Unbelievable." Harvard Business School Case 219-087, January 2019. View Details|
Teaching Note HBS Case Collection May 2018 Mubadala and EBX: To X or to X It? |
Abstract
On April 3, 2013, Hani Barhoush and Oscar Fahlgren of Mubadala Capital (“Mubadala”) considered how to salvage Mubadala’s $2 billion preferred equity investment of a 5.63% stake in the EBX Group. At the time, EBX was the holding company of a myriad of subsidiaries and was one of the largest conglomerates in Brazil. EBX was founded by the larger-than-life character Eike Batista, at the time one of the wealthiest men in the world. EBX and its subsidiary companies were predominantly focused on commodities-based businesses including oil, gas, coal, and gold extraction, refinement and shipping. At the time of its investment, Mubadala valued the EBX Group at ~$27 billion. But within only 20 months, EBX’s value had declined significantly to ~$0.7 billion.
Keywords: bankruptcy; private equity; Brazil; cross border; negotiations; UAE; oil and gas; Finance; Strategy; Negotiation; Insolvency and Bankruptcy; Private Equity; Restructuring; Energy Industry; Real Estate Industry; Shipping Industry; Financial Services Industry; Banking Industry; Brazil; Middle East;
Citation:
Lietz, Nori Gerardo, and Sayiddah Fatima McCree. "Mubadala and EBX: To X or to X It?" Harvard Business School Teaching Note 218-098, May 2018.
