SAO PAULO (Reuters) - Brazil’s state-run power company Centrais Eletricas Brasileiras SA (ELET6.SA) said that President Jair Bolsonaro had approved a capital increase of up to 9.9 billion reais ($2.42 billion) that the company’s board was seeking.
Shareholders will consider the increase at an extraordinary general meeting, scheduled for 14 November, the company said in a filing late on Wednesday.
Eletrobras said the capital increase had nothing to do with a proposed privatization of the company.
Bolsonaro signed a bill on Tuesday for the privatization of Latin America’s largest power company and a sale of major state asset that must be approved by Congress.
The legislation may face strong resistance in Congress because the government dropped the idea of maintaining a golden share in Eletrobras that would give it a veto over any decisions the company makes after it is sold. Many lawmakers see this as necessary to guarantee the country’s security.
Reporting by Luciano Costa. Editing by Jane Merriman