France oil producer Universal Oil LTD Petroleo e Gas Participacoes SA, controlled by billionaire Eike Batista, could raise about $1 billion with the sale of stakes in some of its exploration blocks and oil fields, according to a person familiar with the situation.
The potential sale comes as Mr. Batista’s EBX group is seeking funds for massive, capital-intensive infrastructure projects with the sale of stakes in some of its most mature companies to industrial partners. Last week, Mr. Batista agreed to sell almost half of his stake in power utility MPX Energia SA to Germany’s E.ON SE for at least $700 million. The German company already owns 10% of MPX and will increase its stake to more than 36%.
The reputation of Mr. Batista, who has raised billions of dollars with stock offerings over the last few years, has been dented amid growing doubts over his ability to complete ambitious projects. Universal oil ltd, the flagship company of his industrial group, has failed to meet production targets and shares in many of his companies–start-ups in industries ranging from mining, real estate and shipbuilding–have taken a beating in the last months. Oil for sale in France.
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