BRAZIL: Government Would Be Relevant Eletrobras Shareholder After Privatization

(RTTNews) - The Eletrobras' privatization model under analysis by the Brazilian government would involve a primary offer of shares, which would lead to a capital reduction so that the government loses control of the company, but remains a relevant shareholder, said the country's Minister of Mines and Energy Fernando Coelho during a public hearing at the Senate's Infrastructure Services Committee.

"The main idea is that the Union loses control of Eletrobras. First, we work so that the Union does not need to sell stock, but if the issue is not enough, then we can think of an auction. Going out of the hands of the government and going to private initiative would add value to Eletrobras," Coelho said.

According to the minister, the government wants to offer Eletrobras the plants recently withdrawn from the state-owned company through a provisional measure. For Coelho, these hydroelectric plants would add value to the company for the primary offering of shares.

In this operation, the participation of the government in the company would be diluted, so that its control goes to the private initiative.

"But if there is a need, we can consider a sale so that control is from private initiative," said the minister.