Brazil’s Eletrobras calls general meeting on privatization plans
Brazil’s state-run power company Eletrobras on Thursday called an extraordinary shareholders meeting to approve its privatization plan, one of the government’s most expected financial events this year.
The meeting is scheduled for Feb. 22, at 2 p.m. local time (1700 GMT), and will be held remotely, according to documents sent by the company to Brazil’s Securities and Exchange Commission.
Shareholders will decide on the conditions for privatization, which is still in progress despite not having so far received approval by the Federal Audit Court.
Part of the issues related to privatization will be voted on as a block, including its plan to segregate the assets of Itaipu Binacional and Eletronuclear, which will remain under state control, and the obligation to invest in the revitalization of hydrographic basins.
In a statement, Eletrobras said some conditions for privatization may still be changed, depending on the outcome of the approval process at the Federal Audit Court.
The Court still needs to give its approval to important issues, such as the amount that will be paid by Eletrobras to the federal government to renew its hydroelectric concessions.
The Federal Audit Court will also analyze the privatization model, which may contain the offering of shares on the Brazilian and North American stock exchanges.
This month, the company announced that it plans to file applications for registration of the global public offering for the distribution of common shares and American Depositary Receipts (ADR) in the second quarter.
Source: Reuters (Reporting by Letícia Fucuchima; Writing by Carolina Pulice Editing by Marguerita Choy)