Eletrobras President says he is confident in privatization

Public offering of shares begins the privatization of Eletrobras

Eletrobras filed today (27) with the Securities and Exchange Commission (CVM) a request for automatic registration of a public offering of primary distribution of common shares, that is, with voting rights, issued by the company, to be carried out simultaneously in Brazil and in the outside. The registration also covers a secondary public offering of shares (already existing), to be carried out in Brazil, and with efforts to place the shares abroad.Public offering of shares begins the privatization of Eletrobras

The offer begins the privatization process of holding of the national electricity sector. The realization of the offer is subject to the conditions of the Brazilian and international capital markets.

In a statement made to the market, Centrais Elétricas Brasileiras (Eletrobras) made it clear that there will be no registration of the offer or shares, represented by American Depositary Receipt (ADR), or American Receipt Deposit, in any agency or regulatory body of the capital market in any other country, except in Brazil, with the CVM, and in the United States, with the Securities and Exchange Commission (SEC), which is the US CVM.

According to the Material Fact signed by Eletrobras’ Chief Financial and Investor Relations Officer, Elvira Cavalcanti Presta, in due course, a notice will be published to the market, with information on other characteristics of the public offering; locations for obtaining the preliminary prospectus; estimated dates and locations for the disclosure of the offer; in addition to conditions, procedure, reservation period and collection of intentions from institutional investors within the scope of the offer.

Offer

The primary offering will initially involve 627,675,340 new Eletrobras shares, including those represented by ADRs in the American market. In the secondary offering, there will be another 69,801,516 shares. Eletrobras informed, in the notice to the market, that the number of shares in the initial Brazilian offering may be increased by a supplementary lot of up to 15% of the total shares.

The privatization of the company was regulated on July 12, 2021 by the National Congress, through Law 14,182. The privatization process was approved, by majority vote, by the Federal Audit Court (TCU), on the 18th of this month.

The share reserve period will be between June 3 and 7, according to the notice sent to the CVM. The estimated period for the availability of shares in the public offering is between June 10 and December 10, 2022. The price per share should be defined on June 9.

Eletrobras employees and retirees may express their intention to participate in the public offering from June 3rd to 8th. They will receive 69,747,685 shares, corresponding to 10% of the total number of shares in the global public offering.

With the official launch of the offer to the market, the next steps are the roadshowfor the presentation of the offer to investors, and the determination of the market’s interest in the operation, as well as the final value per share of the offer.

With the distribution of shares destined for the primary offering, Eletrobras is expected to obtain net funds corresponding to a minimum of R$ 22,057,564,316.99. The amount is 5% lower than that originally stipulated in the Resolution of the Board of the Investment Partnership Program (CCPI) No. 203, of October 19, 2021, in the amount of BRL 23,218,488,754.73, for the granting of new contracts for concession of electric power generation provided for in Article 2 of Law 14,182.

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