A decree published this Friday (1st), in an extra edition of the Official Diary of the Union, regulated the sale of shares of Centrais Elétricas Brasileiras SA (Eletrobras) that are held by the National Bank for Economic and Social Development (BNDES) and its subsidiaries, especially those held by BNDES Participation SA – BNDESPAR.
Eletrobras is in the process of privatization through an increase in its capital stock and, according to the law that authorized this process, this may be accompanied by a secondary offering of shares owned by the Federal Government or by a company directly or indirectly controlled by it.
The Union directly holds 51.82% of Eletrobrás’ common shares, according to information referring to the third quarter of last year. With the privatization, there will be an increase in capital stock, with the primary offering of shares, which consists of the sale of new shares on the market. The intention is that the volume of shares acquired by private entities is sufficient to dilute the participation of the Federal Government, so that it no longer controls the company.
If the initial offering of shares is not sufficient to achieve this purpose, the law allows for a secondary offering of shares that are held by the Federal Public Administration, so that the Federal Government loses the majority of Eletrobras’ voting capital. This is the purpose of this decree, which will sell around 16.78% of the total Eletrobras common shares that were held by BNDES and its subsidiaries.
