January 24, 2018 / 11:40 AM / a year ago

Eletrobras expects to raise up to $4 billion in new share sale: CEO

(Reuters) - Brazilian power utility Centrais Elétricas Brasileiras SA (ELET3.SA) expects to raise up to $4 billion with the sale of new shares as part of its privatization, its chief executive officer told newspaper Valor Econômico.

In an interview published in the newspaper’s Wednesday edition, Chief Executive Officer Wilson Ferreira Jr. said the exact terms of the transaction should be decided by Aug. 15.

He declined to specify whether the privatization itself would happen before or after the October presidential elections, saying that decision was up to the government.

The government owns nearly 60 percent of Eletrobras, as the company is known. Under the terms of a draft bill sent to Congress this week, that holding would be diluted through a capital increase, with an option for a secondary offering of government shares.

The bill says the government will have a golden share and that any future private shareholder will have voting rights limited to 10 percent, regardless of the amount of shares it holds in the company after privatization.

The sale of Eletrobras will likely be Brazil’s largest privatization since mining giant Vale SA was sold by the government 20 years ago. Eletrobras is Brazil’s largest power company, holding dozens of subsidiaries with operations in power generation, transmission and distribution.

Reuters’ efforts to contact Eletrobras representatives were unsuccessful.

Writing by Bruno Federowski; Editing by Mark Potter

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