Brazilian tycoon Eike Batista has handed over control of MPX, the billionaire’s power company, to co-investor E.ON (FWB: EOAN) in a bid to clear his debts.

Mr Batista will also resign as chairman of MPX.

  “Eon appreciates Eike’s great contribution to developing MPX to be one of the leading energy companies in Brazil since he founded it in 2001,” said Jørgen Kildahl, a member of Eon’s board of management who will replace Mr Batista and become interim chairman of MPX.

  The move is part of a restructuring that also includes his heavily indebted oil and mining companies, which will be either closed or sold, leaving Batista with rump assets worth $1-2bn, significantly lower than the $30bn fortune he was credited with in 2012.

Eon will increase its 36 per cent stake in MPX by buying nearly half of a R$800m rights issue. Mr Batista will not participate in the offering, reducing his stake from 29 per cent to about 19 per cent.


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