Brazil's Cambuhy secures ex-Batista gas producer

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Friday, August 8, 2014

Brazilian private equity firm Cambuhy Investimentos has acquired a majority stake in Parnaíba Gás Natural (PGN), formerly controlled by embattled tycoon Eike Batista.

OGpar, Batista's one-time oil and gas flagship, said in a statement that it sold a remaining 36% share in PGN to Cambuhy for 200mn reais (US$87mn).

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Cambuhy secured the stake after submitting the only bid at a stock auction in Rio de Janeiro.

The deal takes Cambuhy's interest in PGN to over 70%. The other stakeholders are Eneva and E.ON.

PGN is the operator of eight onshore blocks currently under development in Brazil's northeast.

Rio de Janeiro-based Eneva last month revealed plans to accelerate development of PGN's natural gas fields to meet demand from Brazil's thermoelectric power plants.

Batista's net worth has reportedly fallen to less than US$300mn from an estimated US$43bn in 2011 following the collapse of his once-powerful mining and energy empire.

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