The president of the Federal Audit Court (TCU), Ana Arraes, granted a collective view for a period of 20 days in the Eletrobras privatization process. The decision came after Minister Vital do Rêgo asked for a 60-day view to analyze the process. But, as this deadline should be approved by the plenary, as there was no consensus, the minister agreed with the 20 days. The trial is suspended until the second week of May.
According to the TCU regiment, as Vital do Rêgo himself explained, approval in plenary is not necessary for the 20-day concession. “Because if I want the view, I have to ask for a minimum of 20 days, as it is explicit. With these inquiries I ask your Excellencies, not to waive the 60 days, I really wanted 60 days, because I wanted to discuss with the market, but if your Excellencies are anxious to have this process back in 20 days, I accept”.
The TCU discusses the sales model proposed by the government, which is capitalization, that is, the dispersion of the company’s shareholding control. In February, the Court had already approved the financial aspects of the privatization.
At the time, Vital do Rêgo had already taken a position against the values presented by the government for the sale. He pointed out that the values defined by the government would be underestimated by about R$ 63 billion, which would raise the total value of Eletrobras’ sale to approximately R$ 130 billion, almost double the value that is currently forecast.
In the second stage vote, currently under analysis, the rapporteur of the process, Minister Aroldo Cedraz, voted in favor of privatization. The tendency is for at least two other ministers, Jorge Oliveira and Walton Rodrigues, to follow Cedraz’s vote.
Minister Vital do Rêgo removed any kind of rush from the court in the trial to eventually benefit private investors to take advantage of a supposed “window of opportunity” with a sale of Eletrobras until May. The government’s intention is to sell the state-owned energy company during this period, to prevent the approach of the electoral period from pushing away the willingness of interested parties to invest.
Privatization
Although it has been recording annual net profits since 2018, the federal government announced in March 2021 the inclusion of Eletrobras in the National Privatization Program, claiming that the measure will enable the company to improve its investment capacity and contribute to the development of the Brazilian energy sector.
The privatization process provides for a capitalization of the company. This means that, in principle, the government will not sell its current stake. Shares will be issued for the entry of new investors, thus diluting the company’s capital until the Union’s share is, at most, 45%. Only if this primary offer does not give the expected result will there be a new offer including the sale of shares of the Union itself.
The modeling also predicts the segregation of Itaipu Binacional and Eletronuclear. The shares that Eletrobras owns in these companies will be transferred to the Empresa Brasileira de Participações em Energia Nuclear e Binacional (ENBpar), a state-owned company created in September. In this way, the Union will maintain control over them.
