Go To Top
EletroBras

 

23rd August, 2017

Brazil on Monday floated a proposal to cede control of the country's biggest power utility, Eletrobras, in the boldest privatisation yet by a government struggling to close a record budget deficit, sending Eletrobras' shares soaring in after-market trading.

The Mining and Energy Ministry gave Centrais Elétricas Brasileiras SA, the holding company known as Eletrobras, notice of the plan and said publicly that it would bring the proposal to President Michel Temer's special council on privatisations.

While both the privatisation model and terms are yet to be decided, the government will keep a right to veto some strategic decisions, the ministry said in a statement. American depositary receipts of Eletrobras EBR.N surged 20 percent on the news, hitting US$5.34 in after-market trading. Earlier, the ADRs closed at US$4.45 on Monday in New York.

Temer has worked to attract private investment to Brazil's energy and transportation infrastructure, but giving up control of a state-run company would mark a sharp contrast with other politicians' wariness about unpopular privatisations. A successful sale of the government's Eletrobras stake would help Temer hit a recently widened budget target and avert a another debt rating downgrade after Brazil's worst recession on record. The government sees its stake in Eletrobras as worth at least R$12 billion (US$3.8 billion), a government source said.

Source: Reuters

Latest News

  • Casas Bahia store

     

    27th March, 2018

    Amazon.com and Casino Guichard Perrachon are negotiating a deal in Brazil either partnering or selling the French retailer’s local appliance and electronics chain, a source familiar with the talks said on Tuesday.

  • Shopping mall in Brazil

    19th February, 2018

    Economic activity in Brazil expanded at a faster-than-expected pace in December, capping the first annual increase in four years following the deepest recession in decades.

  • Marcio Appel

     

    7th February, 2018

    Marcio Appel, a 45-year-old money manager whose main fund topped 89 percent of its peers in the past year, is betting on Brazil’s benchmark stock index to double over the next 12 months.

  • Embraer Boeing logos

     

    6th February, 2018

    Boeing has presented a plan to Brazil’s government that would give it an 80 to 90 percent stake in a new venture encompassing Embraer’s commercial jet business, a Brazilian newspaper reported on Tuesday.

  • Didi 99

    3rd January, 2018

    A year after buying a minority stake in Brazilian app 99 - owner of the second most used transportation application in the country, behind Uber -, the Chinese company Didi Chuxing, founded and run by businessman Cheng Wei, closed the acquisition of the Brazilian company at a valuation of R$3.25 billion (US$1 billion).

  • Estacao Hack

     

    28th August, 2017

    Facebook Inc on Monday unveiled its first training centre in Latin America for coders and entrepreneurs, encouraging technology careers for young Brazilians saddled with unemployment after a deep economic crisis.

  • EletroBras logo

     

    23rd August, 2017

    Brazil on Monday floated a proposal to cede control of the country's biggest power utility, Eletrobras, in the boldest privatisation yet by a government struggling to close a record budget deficit, sending Eletrobras' shares soaring in after-market trading.

  • AT&T Time Warner merger

     

    22nd August, 2017

    Brazil’s antitrust watchdog Cade said AT&T’s US$85.4 billion deal for Time Warner poses a high risk to competition, a potential complication that threatens to delay the final approval process.

  • Magazine Luiza's Lu

     

    14th August, 2017

    Lu’s not like other girls on Tinder. For starters, she’s an avatar. The digital saleswoman popped up on the dating app last June, offering coupons as part of Brazilian retailer Magazine Luiza SA’s strategy to boost e-commerce. She’s been surprisingly effective, lifting the company’s online sales by almost five times the pace of the overall market in the first half of the year and helping make Magazine Luiza the world’s best-performing major retail stock.

  • Embraer E175-2 Skywest

     

    28th July, 2017

    Embraer SA returned to profit in the second quarter as the Brazilian aircraft manufacturer ramped up deliveries of narrow body E-Jets to airlines and brought down operating costs through job cuts and controls on corporate expenses.